Enhanced exchange item redemption risk analysis

ABSTRACT

A method includes, when a buyer computing device of an exchange item marketplace network initiates redemption of an exchange item associated with a merchant server of the exchange item marketplace network, receiving, by a marketplace server of the exchange item marketplace network, merchant use information from the merchant server. The merchant use information includes sensor data generated by one or more sensors of the buyer computing device. The method further includes interpreting the sensor data in accordance with one or more exchange item rules to produce sensor summary information, determining a risk level for the redemption based on the sensor summary information, and processing the redemption based on the determined risk level.

CROSS REFERENCE TO RELATED PATENTS

The present U.S. Utility patent application claims priority pursuant to35 U.S.C. § 120 as a continuation of U.S. Utility application Ser. No.15/712,539 entitled “NO POINT-OF-SALE TERMINAL EXCHANGE ITEMREDEMPTION,” filed Sep. 22, 2017, which claims priority pursuant to 35U.S.C. § 119(e) to U.S. Provisional Application No. 62/398,851, entitled“MERCHANT VERIFICATION IN AN EXCHANGE ITEM MARKETPLACE NETWORK,” filedSep. 23, 2016, both of which are hereby incorporated herein by referencein their entirety and made part of the present U.S. Utility patentapplication for all purposes.

STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT

Not Applicable

INCORPORATION-BY-REFERENCE OF MATERIAL SUBMITTED ON A COMPACT DISC

Not Applicable

BACKGROUND OF THE INVENTION Technical Field of the Invention

This invention relates generally to computer networks and moreparticularly to an exchange item marketplace network.

Description of Related Art

The use of credit cards, debit cards, and gift cards to pay for goodsand services is well known. It is further known to use services such asPayPal™ or Apple Pay™ to expand the use of credit cards and debit cardsthrough computing devices (e.g., computers, tablets, cell phones, etc.).The use of these services is aided by the standardized numbering systemand format used by credit card issuers and debit card issuers.

For a credit card and debit card transaction, the credit or debitcardholder presents the credit or debit card to a merchant (e.g., online or brick & mortar) to pay for a purchase. The merchant uses pointof sale (POS) equipment to capture the information of the credit ordebit card and to enter the amount of the purchase. This information issent to an acquirer (e.g., the financial institution of the merchant).The acquirer sends the transaction information via a secure network of acredit card company to the cardholder's issuer (e.g., a financialinstitution that issued the credit or debit card to the cardholder).

The issuer approves or declines the transaction and sends the responseback to the acquirer via the secure network of the credit card company.The acquirer sends the response (e.g., approved or declined) to themerchant to complete the transaction. Money, however, is not exchangedat the time of purchase, but is done during clearing and settlement.

Clearing and settlement begins when the merchant deposits thetransaction receipt with the acquirer. The acquirer credits themerchant's account and sends the transaction receipt to the issuer viathe secure network. The issuer posts the transaction to the cardholder'saccount. The cardholder pays the issuer in response to receiving amonthly statement.

The issuance and use of a gift card is significantly different than thatof a credit card. FIG. 1 illustrates a diagram regarding the issuanceand use of a gift card. A branded company (e.g., a retailer, a chainstore, a restaurant, etc.) issues a request to create gift cards to aprocessor service. The processor service creates the gift cards, whichmay be issued with specific values or issued as blanks; where the valueis specified at the time of purchase.

The processor service provides the gift cards to a distributor who isresponsible for distributing the gift cards so that a consumer maypurchase them. For example, the distributor may provide gift cards tomerchants so they may sell the gift cards. At some point, a consumerpurchases a gift card (e.g., a sporting goods company gift card for$50.00). The payment for the gift card is processed such that thedistributor, processing service, and branded company each are paid theirrespective shares.

If the gift card is used, a merchant (e.g., a franchise owner of thebranded company) captures information of the gift card via point of sale(POS) equipment. The information of the gift card is processed todetermine if it is a valid gift card and to determine the balanceremaining on the gift card. If the card is valid, the use of the giftcard is authorized up to the balance remaining on the gift card. Oncethe use is complete, the balance is updated, processing fees are paid,and the branded company is debited.

Another difference between credit cards and gift cards is that giftcards do not have a standardized numbering system or format. As such,gift cards can have one of thousands of different numbering systems andformats, which have to be recognizable by the POS equipment.

Yet another different between credit cards and gift cards is when moneyis processed. For credit cards, money is not processed until a purchaseoccurs, while gift cards are purchased and then subsequently used. Assuch, money is processed at the time of purchase of the gift card andagain if the gift card is used.

A still further difference between credit cards and purchased gift cardsis that, if a credit card goes unused, no money is spent. In contrast,if a purchased gift card goes unused, money has been spent to acquirethe card, but no goods or services are acquired. It is estimated thatbillions of dollars worth of purchased gift cards go unused annually.While this may be a favorable scenario for the branded company, it isnot a favorable scenario for consumers.

As is further known, point of sale equipment is required to facilitategift card purchases by a merchant.

BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWING(S)

FIG. 1 is a schematic block diagram of an embodiment of an exchange itemmarketplace network in accordance with the present invention;

FIG. 2 is a schematic block diagram of an embodiment of user device ofexchange item marketplace network in accordance with the presentinvention;

FIG. 3 is a schematic block diagram of an embodiment of a marketplaceserver of exchange item marketplace network in accordance with thepresent invention;

FIG. 4 is a schematic block diagram of another embodiment of an exchangeitem marketplace network in accordance with the present invention;

FIG. 5 is a schematic block diagram of another embodiment of an exchangeitem marketplace network in accordance with the present invention;

FIG. 6 is a schematic block diagram of another embodiment of an exchangeitem marketplace network in accordance with the present invention;

FIG. 7A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 7B is a schematic block diagram of a transactions blockchain inaccordance with the present invention;

FIG. 7C is another schematic block diagram of a transactions blockchainin accordance with the present invention;

FIG. 7D is a logic diagram of an embodiment of a method for generating atransactions blockchain in accordance with the present invention;

FIG. 7E is a logic diagram of another embodiment of a method forgenerating a transactions blockchain in accordance with the presentinvention;

FIG. 8A is a logic diagram of an embodiment of a method for utilizing anexchange item in an exchange item marketplace network in accordance withthe present invention;

FIG. 8B is a logic diagram of an embodiment of a method for utilizingrules in an exchange item marketplace network in accordance with thepresent invention;

FIG. 8D is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8E is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8F is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8G is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8H is a diagram of an exchange item database in accordance with thepresent invention;

FIG. 8J is another schematic block diagram of a transactions blockchainin accordance with the present invention;

FIG. 8K is a logic diagram of an embodiment of a method for modifying anexchange item in an exchange item marketplace network in accordance withthe present invention;

FIG. 8L is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8M is a logic diagram of an embodiment of a method for securelymodifying an exchange item in an exchange item marketplace network inaccordance with the present invention;

FIG. 8N is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8P is a logic diagram of an embodiment of a method for securelyprocessing an exchange item in an exchange item marketplace network inaccordance with the present invention;

FIGS. 9A-B are schematic block diagrams of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 9C is a logic diagram of an embodiment of a method for verifying amerchant in an exchange item marketplace network in accordance with thepresent invention;

FIG. 10A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 10B is a logic diagram of an embodiment of a method for redeemingan exchange item in an exchange item marketplace network in accordancewith the present invention;

FIG. 11A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 11B is a logic diagram of an embodiment of a method for promotingutilization of exchange items in an exchange item marketplace network inaccordance with the present invention;

FIG. 12A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 12B is a logic diagram of an embodiment of a method for verifyingredemption of an exchange item in an exchange item marketplace networkin accordance with the present invention;

FIG. 13A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 13B is a logic diagram of an embodiment of a method for authorizingexchange item redemption in an exchange item marketplace network inaccordance with the present invention;

FIG. 14A is a schematic block diagram of a no point-of-sale terminalexchange item marketplace network in accordance with the presentinvention;

FIG. 14B is a schematic block diagram of a secure chain of custody of anexchange item in accordance with the present invention;

FIG. 14C is a schematic block diagram of an example of updating thesecure chain of custody to reflect executed use of an exchange item inaccordance with the present invention;

FIG. 15 is an example of a secure data block in accordance with thepresent invention;

FIGS. 16A and 16B are an example of creating the header section and thetransaction section of a secure data block; and

FIG. 17 is a logic diagram of an embodiment of a method for a nopoint-of-sale terminal exchange item redemption approach in accordancewith the present invention.

DETAILED DESCRIPTION OF THE INVENTION

FIG. 1 is a schematic block diagram of an embodiment of an exchange itemmarketplace network 10 that includes user devices 12 of individualsellers, user devices 14 of bulk sellers, user devices 16 of individualbuyers, one or more marketplace servers 18 (an example embodiment isshown in FIG. 3), one or more databases 20, one or more networks 24, oneor more brand server(s) 26, one or more processor servers 28, one ormore distributor servers 30, point of sale (POS) equipment 32, and oneor more retailer servers 34. Hereafter, the exchange item marketplacenetwork 10 may be interchangeably referred to as a marketplace network,a system, a communication system, a data communication system, and acommunication network. The one or more marketplace servers 18 process,and the one or more databases 20 store a virtual marketplace of exchangeitems 22. Hereafter, the virtual marketplace of exchange items 22 may beinterchangeably referred to as a virtual marketplace, a marketplace, andexchange items.

Each of the user devices 12, 14, and 16 is a computing device thatincludes a computing core. In general, a computing device is anyelectronic device that can communicate data, process data, and/or storedata. A further generality of a computing device is that it includes acentral processing unit (CPU), a memory system, user input/outputinterfaces, peripheral device interfaces, and an interconnecting busstructure.

As specific examples, each of the user devices 12-16 may be a portablecomputing device and/or a fixed computing device. A portable computingdevice may be a social networking device, a gaming device, a cell phone,a smart phone, a personal digital assistant, a digital music player, adigital video player, a laptop computer, a handheld computer, a tablet,a video game controller, and/or any other portable device that includesa computing core. A fixed computing device may be a personal computer(PC), a computer server, a cable set-top box, a satellite receiver, atelevision set, a printer, a fax machine, home entertainment equipment,a video game console, and/or any type of home or office computingequipment that includes a computing core. An embodiment of a computingdevice 12-16 is further described below with reference to FIG. 2.

The exchange item marketplace network 10 supports the selling andpurchasing of exchange items. An exchange item is a closed loopfinancial instrument and/or other digital goods. For example, a closedloop financial instrument is a gift card, a voucher, a store credit,and/or other brand company (or merchant) sponsored form of credit for aspecific use (e.g., in a specific store, in a specific chain of stores,for a particular type of goods, etc.). A closed loop financialinstrument is distinguished from an open loop financial instrument, suchas a credit card.

A digital good is digital item that can legally be sold or resold by anindividual. For example, the digital item may be an original digitalbook, an original digital photograph, an original video clip, apurchased video game, a purchased software application, a purchasevideo, a purchased music file, a purchased digital book, a purchasedaudio book, etc.

In support of selling an exchange item, the marketplace server 18communicates with a user device of a seller (e.g., individual or bulk)to verify the user device (and the seller) and to ascertain informationregarding the exchange item being offered for sale. For example, themarketplace server 18 verifies user information (e.g., the seller'sname, account, personal identification number (PIN), a useridentification number (ID), payment account information (e.g., a creditcard number, checking or savings account information), seller's mailingaddress, etc.) and device information (e.g., an IP address, deviceserial number, a marketplace application ID, etc.) of the seller'scomputing device. Verification of the seller and corresponding computingdevice is discussed in greater detail with reference to FIG. 6A.

Upon receiving the information regarding the exchange item, whichincludes a brand name (e.g., a coffee franchise, a sporting goodfranchise, an electronics store, etc.), a serial number, a sellingprice, a remaining balance, restrictions of use, a bar code, and/orother pertinent information, the marketplace server 18 verifies it. Whenthe seller and the information regarding the exchange item are verified,the marketplace server 18 posts it in the virtual marketplace ofexchange items 22, which is stored in database 20.

The marketplace server 18 posts the exchange item in the virtualmarketplace 22 by creating a digital representation of the exchangeitem. To do this, the server creates a digital image of the exchangeitem, determines the brand of the exchange item, and the informationregarding the exchange item (e.g., a brief description, brand, sellingprice, balance, serial number, restrictions (if any), expiration date(if any), and/or any other pertinent information). In accordance with anorganization protocol of the virtual marketplace, the digitalrepresentation of the exchange item is added. For instance, theorganization protocol groups exchange items by types (e.g., restaurants,sporting goods, coffee shops, automotive goods, etc.), by brands (e.g.,a sporting goods chain, a coffee shop chain, etc.), by sales price, bybalance of the exchange item, by a savings value (e.g., a differencebetween the balance and the sales price), by expiration date, by dateoffered for sale, by special promotions, by seller, by restrictions, bya brief description (e.g., title of a video for resale), and/or anyother organization scheme that lends itself to searching for particularitems.

As such, for a particular exchange item offered for sale, its digitalrepresentation is added to the database 20 and will be displayed withina grouping per the organization protocol when a potential buyer or otheruser of the system 10 selects the grouping. In one example, if theexchange item is a gift card, a digital image of the gift card isdisplayed along with at least some of the related information (e.g.,sales price, balance, etc.). If the gift card includes a logo of thebranded company offering the gift card, the logo is often displayed inaccordance with requirements of the branded company.

A potential buyer of an exchange item offered for sale accesses thesystem 10 using its user device 16. For example, the user device 16 logsinto the system 10. If the user device 16 is associated with a buyerthat does not have an account with the system 10, the buyer creates onethrough the user device 16 with the system. For buyers with an account,the marketplace server 18 verifies the buyer user device 16 beforeallowing it access to the virtual marketplace 22. The buyer verificationprocess is discussed in greater detail with reference to FIG. 4.

Once the buyer is verified, the buyer computing device 16 is allowedaccess the virtual marketplace 22. The buyer computing device 16 usessearching criteria that are in accordance with the organization protocolto search the virtual marketplace 22 for exchange items of interest. Themarketplace server 18 provides video-graphics data to the buyercomputing device 16 in accordance with the searching. When the buyercomputing device 16 finds exchange items of interest, it displays thevideo-graphics of the corresponding exchange items (e.g., a grouping ofgift cards).

The buyer computing device 16 receives an input corresponding to aselection of one of the exchange items of interest for purchase. Thebuyer computing device 16 sends the selected exchange item to themarketplace server 18 for processing.

The marketplace server 18 processes the selected exchange item via amultiple step process. One step includes verifying that the buyer isauthorized to purchase the exchange item (e.g., has the financialresources, is not limited by buying restrictions (e.g., dollar amount,quantity, type, etc.), is a legitimate buyer, etc.). Another stepincludes verifying integrity of the information of the selected exchangeitem (e.g., balance remaining is accurate, the offer to sell theexchange item has not been withdrawn, the exchange item is not currentlybeing processed for sale to another buyer, the exchange item is notexpired, the exchange item has not been voided by the branded company,etc.).

When the buyer is authorized and the information regarding the selectedexchange item has been verified, another step includes removing theexchange item from the virtual marketplace 22. Another step includesprocessing payment for the selected exchange item. The multiple stepbuying process is further described with reference to FIG. 4.

FIG. 2 is a schematic block diagram of an embodiment of computing device12-16 of exchange item marketplace network 10. The computing device12-16 includes a computing core 52, one or more input devices 54 (e.g.,keypad, keyboard, touchscreen, voice to text, etc.), one or more audiooutput devices 56 (e.g., speaker(s), headphone jack, etc.), one or morevisual output devices 58 (e.g., video graphics display, touchscreen,etc.), one or more universal serial bus (USB) devices, one or morenetworking devices (e.g., a wireless local area network (WLAN) device84, a wired LAN device 86, a wireless wide area network (WWAN) device 88(e.g., a cellular telephone transceiver, a wireless data networktransceiver, etc.), and/or a wired WAN device 90), one or more memorydevices (e.g., a flash memory device 92, one or more hard drives 94, oneor more solid state (SS) memory devices 96, and/or cloud memory 98), andone or more peripheral devices.

The computing core 52 includes a video graphics processing unit 60, oneor more processing modules 62, a memory controller 64, main memory 66(e.g., RAM), one or more input/output (I/O) device interface module 68,an input/output (I/O) interface 70, an input/output (I/O) controller 72,a peripheral interface 74, one or more USB interface modules 76, one ormore network interface modules 78, one or more memory interface modules80, and/or one or more peripheral device interface modules 82. Each ofthe interface modules 68, 76, 78, 80, and 82 includes a combination ofhardware (e.g., connectors, wiring, etc.) and operational instructionsstored on memory (e.g., driver software) that is executed by theprocessing module 62 and/or a processing circuit within the interfacemodule. Each of the interface modules couples to one or more componentsof the computing device 12-16. For example, one of the TO deviceinterface modules 68 couples to an audio output device 56. As anotherexample, one of the memory interface modules 80 couples to flash memory92 and another one of the memory interface modules 80 couples to cloudmemory 98 (e.g., an on-line storage system and/or on-line backupsystem).

FIG. 3 is a schematic block diagram of an embodiment of a marketplaceserver 18 of exchange item marketplace network 10. The server 18includes a computing core 122, one or more input devices 54 (e.g.,keypad, keyboard, touchscreen, voice to text, etc.), one or more audiooutput devices 56 (e.g., speaker(s), headphone jack, etc.), one or morevisual output devices 58 (e.g., video graphics display, touchscreen,etc.), one or more networking devices (e.g., a wireless local areanetwork (WLAN) device 84, a wired LAN device 86, a wireless wide areanetwork (WWAN) device 88 (e.g., a cellular telephone transceiver, awireless data network transceiver, etc.), and/or a wired WAN device 90),one or more memory devices (e.g., a flash memory device 92, one or morehard drives 94, one or more solid state (SS) memory devices 96, and/orcloud memory 98), and one or more peripheral devices. Note that theserver 18 may include more or less devices than shown in this exampleembodiment of a server.

The computing core 122 includes a video graphics processing unit 60, aplurality of processing modules 62, a memory controller 64, a pluralityof main memories 66 (e.g., RAM), one or more input/output (I/O) deviceinterface module 68, an input/output (I/O) interface 70, an input/output(I/O) controller 72, a peripheral interface 74, one or more networkinterface modules 78, and/or one or more memory interface module 80.

FIG. 4 is a schematic block diagram of another embodiment of an exchangeitem (EI) marketplace (MP) network that includes the seller's computingdevice 12, the buyer's computing device 16, a seller's financial server190, a service provider's financial server 192, a buyer's financialserver 194, the marketplace (MP) server(s) 18, and the database 20,which includes the virtual marketplace of exchange items 22. Each of theseller's computing device 12 and buyer's computing device 16 includes amarketplace interface 142, which includes a web browser 196 and a mobileapplication 198.

The MP server 18 performs function blocks that includes a sellerverification 200, a deny 202, an exchange item verification 204, an addexchange item to marketplace 206, a buyer verification 208, a deny 210,an exchange item purchase verification 212, an exchange item paymentprocessing 214, a remove exchange item from marketplace 216, an addexchange item to buyer's wallet 218, an exchange item use 220, and anexchange item balance update 222.

As an example of operation, the mobile application 198 of the seller'scomputing device 12 sends a request to sell an exchange item to themarketplace (MP) server(s) 18. The server 18 performs the sellerverification 200 functional block to determine whether the seller and/orthe seller's computing device 12 are a valid seller (e.g., device and/orseller are valid). When invalid, the server(s) 18 performs the deny 202functional block to communicate a denial of the request to sell theexchange item to the seller's computing device 12.

When the seller is verified, the server performs the exchange itemverification 204 functional block to determine whether the exchange itemis valid (e.g., is a valid exchange item, perform a balance check withan associated entity, i.e., a retailer, etc.). When invalid, theserver(s) perform the deny 202 functional block. When the exchange itemis valid, the server(s) 18 perform the add exchange item to marketplace206 functional block to add a digital representation of the exchangeitem to the virtual marketplace of exchange items 22 (e.g., creates anew entry for inventory within the virtual marketplace of exchange items22).

When a buyer desires to purchase an exchange item, the mobileapplication 198 of the buyer's computing device 16 sends a request tobuy a selected exchange item to the MP server(s) 18. The server(s) 18perform the buyer verification 208 functional block to determine whetherthe buyer is valid (e.g., the user and/or buyer computing device arevalid). When invalid, the server(s) 18 perform the deny 210 functionalblock to issue a denial of the purchase request to the buyer's computingdevice 16.

When the buyer is validated, the server(s) 18 perform the exchange itempurchase verification 212 functional block to verify that the buyer, viathe buyer's computing device, has sufficient means (e.g., money, credit,valid credit card, valid debit card, etc.) to pay for the selectedexchange item. For example, the exchange item purchase verification 212functional block enables the server 18 to receive buyer information fromthe buyer's financial server 194 verifying payment and/or verifying anability to pay. When unable to purchase the selected exchange item, theserver 18 performs the deny 210 functional block.

When the buyer is able to purchase the selected exchange item, theserver 18 performs the exchange item payment processing 214 functionalblock to process payment for the selected exchange item. For example,the server 18 collects payment from the buyer's e-wallet, the buyer'scomputing device 16, or the buyer's financial server 194, issues apayment to the seller's e-wallet, to the seller's computing device, orto the seller's financial server 190, and issues a commission payment tothe service provider's financial server 192.

After processing payment or concurrent with the processing of thepayment, the server 18 performs the remove exchange item frommarketplace 216 functional block to remove the selected exchange itemfrom the virtual marketplace of exchange items 22. For example, theserver 18 deletes an entry associated with the selected exchange itemfrom the database 20.

The server 18 performs the add exchange item to the buyer's wallet 218functional block to facilitate adding the exchange item to a buyer'se-wallet. For example, the server 18 updates a representation of thebuyer's wallet within the database 20 to include a digitalrepresentation of the purchased exchange item and issues a message tothe mobile application 198 to store a local copy of the digitalrepresentation within the buyer's computing device 16.

When the buyer desires to purchase something using an exchange item, themobile application 198 communicates a utilization message to the server18. The server 18 evokes the exchange item use 220 functional block toreceive the utilization message and to facilitate communication withother servers for verification and transaction execution. For example,the server 18 forwards the utilization message to a retailer serverassociated with the exchange item to initiate execution of thetransaction. Having successfully used the exchange item, the server 18,via the exchange item balance update 222 functional block, updates thebuyer's wallet to indicate that the exchange item has been utilized andto update the balance remaining on the exchange item, when appropriate.

FIG. 5 is a schematic block diagram of another embodiment of an exchangeitem marketplace network 10A that includes a plurality of sellers 702, aplurality of buyers 704, and an on-line exchange item marketplace 700.Hereafter, the exchange item marketplace network 10A may beinterchangeably referred to as a system, a communication system, and acommunication network. The sellers 702 include individual sellers 706,bulk resellers 708, and retailers 710. The buyers 704 include individualbuyers 712 and other types of buyers 714 (e.g., bulk buyers, resalebuyers, etc.).

Each seller 702 and each buyer 704 corresponds to a computing device12-16 that includes a marketplace interface module 716 that enables thecomputing device access to the marketplace 700 and to function therein.The marketplace interface module 716 includes a browser application 722,a mobile device application 720, and/or any type of application thatenables access to the marketplace 700. The computing core 52 of the userdevice executes one or more of these applications. For instance, each ofthe applications includes operational instructions that are stored inmemory (e.g., main memory, flash memory, SS memory, HD memory, and/orcloud memory) and executed by the processing module 62 of the computingcore 52.

Alternatively, the marketplace interface module 716 includes aprocessing circuit and memory, wherein the memory stores and theprocessing circuit executes the operational instructions of theapplication. As yet another alternative, the processing circuit of themarketplace interface module 716 and the processing module 62 of thecomputing core 52 co-process the operational instructions of one or moreof the applications. Interface 718 functions in a similar manner toprovide bulk resellers 708 and/or retailers 710 access and functionwithin the marketplace 700.

One or more marketplace servers 18 supports the on-line exchange item(EI) marketplace 700 by performing the functions of the correspondingfunctional blocks. The functional blocks include seller software tools738, individual seller fraud detection 724, individual sale processing726, bulk seller verification processing 730, bulk sale processing 732,retailer verification processing 734, retailer sale processing 736,displaying exchange items for sale 728 in the marketplace 700, paymentprocessing 748, MP user e-wallet 750, buyer fraud detection 740,purchase processing 742, consumer profiles 744, and market customization746. A functional block includes one or more of a standalone processingmodule that executes operational instructions to perform thecorresponding functions of the block, a software algorithm executed bythe computer core of the server to perform the corresponding functionsof the block, and/or a combination thereof.

The server(s) 18 perform the marketplace user e-wallet functional block750 to create and maintain an e-wallet for a user of the marketplace700. The e-wallet is essentially a file for an individual user (e.g., aperson, a legal entity, etc.) that stores information regarding exchangeitems bought, sold, and/or used by the user. For example, the e-walletstores a digital representation of each purchased exchange item that hasa value greater than zero. For example, a digital representation of agift card is displayed in an asset section of the e-wallet while thegift card has a balance above zero and the gift card has not expired.When the balance is zero or the gift card expires, the digitalrepresentation is removed and the information regarding the gift card isstored in an archive section of the e-wallet.

The e-wallet is further capable of storing and tracking marketplacecredit. For example, a user may purchase marketplace credit that issubsequently used to purchase an exchange item. In addition, a seller ofan exchange item may be paid in marketplace credit that the seller mayuse to purchase an exchange item or cash out.

The e-wallet further functions to archive data regarding previousexchange item purchases and/or previous exchange item sales. The amountof data stored for each exchange item purchase or sale may be userdefined or set based on a system default setting. For example, the datafor a purchase includes one or more of a purchase price, the exchangeitem ID, a serial number, a brand name, a purchase date, the value ofthe exchange item, restrictions of the exchange item, and an expirationdate. The data for a purchased exchange item may further include useinformation (e.g., when the exchanged item was used, the amount of valueused, the date of use, the place of use, etc.) and/or remaining valueinformation.

As another example, the data for a sale includes one or more of anasking selling price, a sold price, the exchange item ID, a serialnumber, a brand name, an offer for sale time stamp, a sold time stamp,the value of the exchange item, restrictions of the exchange item, andan expiration date. The data for a sold exchange item may furtherinclude price reduction information (e.g., the amount of the change, achange time stamp, etc.) and/or information regarding a withdrawal of anoffer for sale.

The server(s) 18 perform the seller software tools functional block 738to assist a seller (e.g., individual, bulk, or retailer) in setting aprice for an exchange item. For example, the server(s) 18 record dataregarding exchange items offered for sale, data regarding purchases ofexchange items, and data regarding exchange items for which the offerfor sale was withdrawn. From this data, the server(s) 18 determinespredictive sales information. For example, the server(s) 18 determinesfor a particular type of exchange item (e.g., a gift card for aparticular franchise) a correlation between the value of the exchangeitem and duration in the marketplace (e.g., a $250 gift card has anaverage duration of 1 day, a $100 gift card has an average duration of12 hours, a $50 gift card has an average duration of 5 hours, etc.).

As another example of predictive sales information, the server(s) 18determine a correlation between sales price and duration in themarketplace (e.g., a 5% discount has an average duration of 12.5 hours,a 3% discount has an average of 1 day, and a 10% discount has an averageduration of 1.5 hours). As yet another example, the server(s) 18determine a periodic sales volume for a particular exchange item (e.g.,how many sold in an hour, six hours, a day, etc.). As yet anotherexample, the server(s) 18 determine a current quantity of the particularexchange items for sale (e.g., how many are currently being offered forsale, at what sales price, the current average duration in themarketplace, etc.). The server(s) 18 may further analyze any type ofdata maintained by the system 10A to assist in the creation ofpredictive sales information.

In addition to creating the predictive sales information, the server(s)18 generate a seller's profile, which includes information regarding thesales tendencies and/or preferences of a particular seller. For example,the seller's profile includes information regarding one or more of thetypes of exchange items offered for sale, information regarding if andwhen exchange item offers for sale are withdrawn, initial asking pricesfor exchange items offered for sale, actual sales price information andcorresponding discounted percentage, frequency for which initial askingprice is adjusted, average duration of exchange items in themarketplace, standard deviation of duration of exchange items in themarketplace, etc.

From the predictive sales information and the seller's profile, theserver(s) 18 provide a suggested sales price for a particular exchangeitem. For example, the seller profile indicates that the seller has atendency to offer a particular exchange item with a minimal discount andprefers that the exchange item remain in the marketplace for less than 6hours. Further, the predictive sales information for the particularexchange item indicates that there is currently above normal quantity ofthe exchange item for sale, the current asking price has a greaterdiscount than the seller's preference, and the current average durationin the marketplace is 7 hours, the server(s) 18 provides one or morerecommendations and corresponding predictive outcomes (e.g., an initialasking price below the seller's profile to sell the exchange item within6 hours, an initial asking price corresponding to the seller's profileto sell the exchange item within 11 hours, etc.). The server(s) 18 mayfurther provide the predictive sales information to the seller'scomputing device.

The server(s) 18 perform the individual seller fraud detectionfunctional block 724 to automate detection of a fraudulent seller and/ora fraudulent exchange item. This includes the seller verification andthe exchange item verification as discussed in FIG. 4. The frauddetection further includes an automated process for resolving apotential fraud issue. For example, when a verification of seller fallsbetween verified and not verified, the server(s) 18 evoke a process torender a definitive verification decision. As another example, when theverification of an exchange item falls between verified and notverified, the server(s) 18 evoke a process to render a definitiveverification decision.

To extend the use of the marketplace to retailers or branded companies(i.e., the entity that initiates a gift card and ultimately accepts thegift card as payment), the server(s) 18 perform the retailerverification processing functional block 734 and the retailer saleprocessing functional block 736. The retailer verification processingfunctional block 734 includes one or more of setting up an account for aretailer to sell exchange items via the marketplace, verifying theretailer at least at the setup of the account and potentially for eachtransaction conducted via the marketplace, verifying the exchange itemsbeing offered for sale, and/or other verification mechanisms. As anexample, a secure portal is established between the retailer seller andthe marketplace server(s) 18 such that any communications via the secureportal is at least initially deemed a valid communication.

The retailer sale processing functional block 736 includes one or moreof creating digital representations of the exchange items offered forsale, determining selling parameters and posting the digitalrepresentations and the parameters in the marketplace. The sellingparameters include one or more of sales price, listing duration beforechanging price, restrictions, withdraw procedures, etc.

The server(s) 18 perform the buyer fraud detection functional block 740to automate detection of a fraudulent buyer and/or fraudulent financialinformation used for purchasing. This includes the buyer verificationand the purchase verification as discussed in FIG. 4. The frauddetection further includes an automated process for resolving apotential fraud issue. For example, when a verification of buyer fallsbetween verified and not verified, the server(s) 18 evoke a process torender a definitive verification decision. As another example, when theverification of financial information falls between verified and notverified, the server(s) 18 evoke a process to render a definitiveverification decision.

The server(s) 18 perform the payment processing functional block 748 toprocess payment through the user e-wallets of the seller and of thebuyer. For instance, payment by the buyer is made from the buyer'se-wallet by debiting a credit card, a checking account, a savingsaccount, a currency balance (e.g., money on account for purchases),and/or marketplace credit. Payment to the seller is made by creditingthe seller's e-wallet with currency, marketplace credit, and/or someform of financial receipt. The mechanics of the payment process includethe functionality described in FIG. 4.

The server(s) 18 perform the consumer profiles functional block 744 fora buyer. For the buyer, its consumer profile includes data regardingexchange item purchases of the buyer. The data includes one or more ofthe exchange items purchased, frequency of purchases, average purchaseprice, average value of purchased like exchange items (e.g., coffee shopgift cards), preferred discounts, etc. Note that this may be included inthe buyer's e-wallet or maintained as a separate file.

The server(s) 18 perform the market customization functional block 746to customize marketing of exchange items being offered for sale toparticular buyers based on their buyer profiles. The marketcustomization functional block 746 further includes determining a typeand a quantity of exchange items a retailer should offer for sale anddirecting marketing efforts to a particular segment of buyers. In thismanner, the system 10A efficiently and effectively couples exchangeitems for sale to buyers who typically buy such exchange items.

The server(s) 18 perform the individual sales processing function block726, the bulk seller verification processing functional block 730, thebulk sale processing functional block 732, and the purchase processingfunctional block 742 as described with reference to one or more of FIGS.1 and 4. The server(s) 18 also perform the displaying exchange items forsale functional block 728 to add/remove/edit an exchange item in themarketplace 700 as described with reference to one or more of FIGS. 1and 4.

FIG. 6 is a schematic block diagram of another embodiment of an exchangeitem marketplace network that includes the network 24 of FIG. 1, anexchange item (EI) issuing server 920, and EI trusted module 922, amerchant server 924, the marketplace database 20 of FIG. 1, themarketplace server 18 and FIG. 1, an EI buyer computing device 926, andan initial owner computing device 928. The EI issuing server 920 may beimplemented utilizing one or more of the brand server(s) 26 of FIG. 1,the processor server 28 of FIG. 1, and the distributor server 30 FIG. 1.The EI trusted module 922 may be implemented within one or more of theEI issuing server 920, the merchant server 924, and the marketplaceserver 18. The merchant server 924 may be implemented utilizing one ormore of the retail server 34 of FIG. 1 and the point-of-sale equipment32 of FIG. 1. The EI buyer computing device 926 may be implementedutilizing the buyer's computing device 16 of FIG. 4. The initial ownercomputing device 928 may be implemented utilizing the seller's computingdevice 12 of FIG. 4.

The marketplace database 20 includes a variety of databases, such as anagreement database 930, a user database 932, and an exchange itemdatabase 934. Each of the databases will be discussed in greater detailwith reference to following figures. The marketplace server 18 includesa variety of processing capability, which may be implemented as aplurality of processing modules. In an embodiment, the marketplaceserver 18 includes a set of processing 936, a sale processing 938, a useprocessing 940, and a rule processing 942. Each of the processingmodules will be discussed in greater detail with reference to followingfigures.

The EI buyer computing device 926 includes a digital wallet 944 and theinitial owner computing device 928 includes another digital wallet 946.Each of the digital wallets 944-946 is utilized to store a variety ofinformation associated with one or more exchange items, such as balanceinformation, pricing information, history of sale, brand affiliation,rules, conditions, use options, owner information, and securityinformation to ensure trust of the content of the digital wallet.

FIG. 7A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes an EI distributor 800,the seller's computing device 12, the MP server(s) 18, the database 20,the buyer's computing device 16, and a retailer computing device 802.Alternatively, the MP server may include the database 20, where thevirtual marketplace of exchange items 22 is stored as one or moretransaction blockchains of a secure custody protocol. The EI distributor800 may be implemented utilizing one or more of the distributor servers30 of FIG. 1, the brand server(s) 26 of FIG. 1, the MP server 18, and amerchant server (e.g., any entity acting on behalf of a brand in adistributor role). The retailer computing device 802 may be implementedutilizing one or more of the point-of-sale (POS) equipment 32 of FIG. 1,a merchant server, and the retail servers 34 of FIG. 1. The seller'scomputing device 12 includes the marketplace interface 142. The buyer'scomputing device 16 includes the marketplace interface 142 and the flashmemory 92 of FIG. 2. The marketplace interface 142 includes the mobileapp 198 of FIG. 4. The exchange item marketplace network functions togenerate a transactions blockchain while facilitating a plurality ofexchange item transactions. For example, a transactions blockchain ismaintained for each exchange item. As another example, the transactionsblockchain is maintained for a plurality of exchange items. As yetanother example, a single transactions blockchain is maintained for allthe exchange items for the entire virtual marketplace of exchange items22. The transactions blockchain includes a block associated with eachtransaction of the plurality of exchange item transactions. Each blockincludes a header section and a transaction section. A structure of thetransactions blockchain is discussed in greater detail with reference toFIGS. 7B-C.

In an example of operation of the generating of the transactionsblockchain, the EI distributor 800 generates a block 0 of thetransactions blockchain to establish exchange item (EI) information whendetermining to offer an exchange item for sale. The determining may bebased on one or more of receiving a purchase request from the seller'scomputing device 12, receiving a bulk EI creation request, receiving theEI information from one or more of a branded company server and aprocessor service, and interpreting a schedule. For example, the EIdistributor 800 determines to establish the EI information whenreceiving, via the processor service, EI information for a plurality ofexchange items from the branded company server. As another example, theEI distributor 800 determines to establish the EI information whenreceiving, via a retail point-of-sale device, a purchase request for theEI from the seller's computing device 12.

Having determined to offer the EI for sale, the EI distributor 800obtains the EI information. The obtaining includes receiving the EIinformation from the processor service and generating the EIinformation. The generating the EI information includes obtaining one ormore of available balance, serial number, personal identification number(PIN), brand, EI type, expiration date, pricing approach, purchaserestrictions, a hash of one or more of the elements of the EIinformation (e.g., a secure hash of the EI type using a private key of aprivate/public key pair of the brand server(s) 26), and the public keyof the private/public key pair of the brand server(s) 26. Havingobtained the EI information, the EI distributor 800 generates the block0 to include the EI information.

The generating of the block 0 includes populating the block zero with arepresentation of the EI information and establishing trust for theblock 0 utilizing a trust approach. The trust approach includes at leastone of a digital signature approach utilizing a private key of aprivate/public key pair of the EI distributor 800 and encrypting the EIinformation utilizing the private key of the private/public key pair ofthe EI distributor 800 to produce the representation of the EIinformation. For example, the EI distributor 800 encrypts the EIinformation and the public key of the EI distributor 800 utilizing theprivate key of the EI distributor 800 to produce the transaction sectionof the block 0 when utilizing the encryption trust approach. As anotherexample, the EI distributor 800 utilizes the private key of the EIdistributor 800 to generate a digital signature over the EI informationand the public key of the EI distributor 800 to produce the transactionsection of the block 0.

When receiving the EI purchase request from the seller's computingdevice 12, the EI distributor 800 generates a block 1 of the EItransactions chain to indicate that the seller's computing device 12 ispurchasing the EI from the EI distributor 800, where the block 1 ischained to the block 0 in accordance with a trusted chaining approach,and where the block 1 is generated utilizing the trust approach (e.g.,as utilized when generating the block 0). The trusted chaining approachis discussed in greater detail with reference to FIG. 7C.

The generating of the block 1 includes generating seller to distributorpayment information 1 (e.g., purchase price of this transaction, atimestamp of this transaction, purchaser identifier, and the transactionportion of the previous block), and establishing trust for the block 1utilizing the trust approach. For example, the EI distributor 800obtains a public key of a private/public key pair of the seller'scomputing device 12, encrypts the seller to distributor paymentinformation 1 and the public key of the seller's computing device 12utilizing the private key of the EI distributor 800 to produce thetransaction portion of the block 1 when utilizing the encryption trustapproach. As another example, the EI distributor 800 utilizes theprivate key of the EI distributor 800 to generate a digital signatureover the seller to distributor payment information 1 and the public keyof the seller's computing device 12 to produce the transaction sectionof the block 1.

Having generated the block 1 chained to the block 0, the EI distributor800 issues secure EI information 804 to the seller's computing device12. The issuing includes generating the secure EI information 804 toinclude the EI transactions chain (e.g., blocks 0-1) and sending thesecure EI information 804 to the seller's computing device 12.

When determining to offer the EI for sale via the virtual marketplace ofexchange items 22, the seller's computing device 12 issues secure EIinformation 806 to the MP servers 18, where the secure EI information806 includes one or more of the secure EI information 804 and a requestto sell the EI via the virtual marketplace of exchange items 22. Havingreceived the secure EI information 806, MP servers 18 communicatespricing information 808 with the seller's computing device 12, where thepricing information 808 includes one or more of a desired price, adesired price range, a recommended price range, a recommended price, anda confirmed price.

Having communicated the confirmed price, the seller's computing device12 and the MP servers 18 communicates secure sale information 810. Forexample, the MP servers 18 updates inventory information 809 (e.g.,brand, balance, price, expiration date, volume, pricing rules by brand,etc.) to provide a representation of the EI for storage in the database20 based on the transaction portion of the block 1, the MP servers 18provides a public key of a private/public key pair of the MP servers 18to the seller's computing device 12, and the seller's computing device12 generates a block 2 of the EI transactions chain to indicate that theMP servers 18 is representing the EI for purchase by a buyer's computingdevice 16, where the block 2 is chained to the block 1 in accordancewith the trusted chaining approach, and where the block 2 is generatedutilizing the trust approach (e.g., as utilized when generating theblock 1).

The generating of the block 2 includes generating a marketplace toseller representation and/or payment information 2 (e.g., desired price,a timestamp of this transaction, purchaser identifier, and thetransaction portion of the previous block), and establishing trust forthe block 2 utilizing the trust approach. For example, the seller'scomputing device 12 obtains the public key of a private/public key pairof the MP servers 18, encrypts the seller representation and/or paymentinformation 2 and the public key of the MP servers 18 utilizing theprivate key of the seller's computing device 12 to produce thetransaction section of the block 2 when utilizing the encryption trustapproach. As another example, the seller's computing device 12 utilizesthe private key of the seller's computer device 12 to generate a digitalsignature over the seller representation and/or payment information 2and the public key of the MP servers 18 to produce the transactionportion of the block 2.

Having generated the block 2 chained to the block 1, the seller'scomputing device 12 issues the secure sale information 810 to the MPservers 18. The issuing includes generating the secure sale information810 to include the EI transactions chain (e.g., blocks 0-2) and sendingthe secure sale information 810 to the MP servers 18.

When determining to purchase the EI for sale via the virtual marketplaceof exchange items 22, the buyer's computing device 16 issues an EIpurchase request 812 to the MP servers 18, where the EI purchase request812 includes a request to purchase the EI (e.g., buyer's computingdevice 16 identifier, public key of a private/public key pair of thebuyer's computing device 16, a purchase price, etc.). Having receivedthe EI purchase request 812, the MP servers 18 communicate secure buyerwallet information 814 with the buyer's computing device 16. Forexample, the buyer's computing device 16 sends payment instructions tothe MP servers 18 (e.g., purchase price, payment account information),the MP servers 18 generates a block 3 of the EI transactions chain toindicate that the buyer's computing device 16 is purchasing the EI forthe purchase price amount, where the block 3 is chained to the block 2in accordance with the trusted chaining approach, and where the block 3is generated utilizing the trust approach (e.g., as utilized whengenerating the block 2).

The generating of the block 3 includes generating buyer to marketplacepayment information 3 (e.g., a confirmed purchase price, paymentinstructions, a timestamp of this transaction, purchaser identifier, andthe transaction portion of the previous block), and establishing trustfor the block 3 utilizing the trust approach. For example, the MPservers 18 obtains the public key of the private/public key pair of thebuyer's computing device 16, encrypts the buyer to marketplace paymentinformation 3 and the public key of the buyer's computing device 16utilizing the private key of the MP servers 18 to produce thetransaction section of the block 3 when utilizing the encryption trustapproach. As another example, the MP servers 18 utilizes the private keyof the MP servers 18 to generate a digital signature over the buyer tomarketplace payment information 3 and the public key of the buyer'scomputing device 16 to produce the transaction section of the block 3.

Having generated the block 3 chained to the block 2, the MP servers 18issues secure buyer wallet information 814 to the buyers computingdevice 16. The issuing includes generating the secure buyer walletinformation 814 to include the EI transactions chain (e.g., blocks 0-3)and sending the secure buyer wallet information 814 to buyer's computingdevice 16, where the mobile app 198 facilitates storage of thetransactions chain as a secure EI record 822 in the flash memory 92.

When the buyer's computing device 16 determines to utilize the EI forpayment of a transaction with the retailer computing device 802, thebuyer's computing device 16 sends a transaction request 816 to theretailer computing device 802, where the transaction request 816includes one or more of a retail transaction identifier of thetransaction with the retailer computing device 802, and paymentinstructions that identifies the EI.

Having received the transaction request 816, the retailer computingdevice 802 and the buyer's computing device 16 communicate securebalance verification 818. The communicating of the secure balanceverification information 818 includes the buyer's computing device 16sending one or more of the secure EI record 822 (e.g., blocks 0-3) tothe retailer computing device 802 and the public key of theprivate/public key pair of the MP servers 18.

Having received the secure EI record 822, the retailer computing device802 verifies that a sufficient balance level is associated with thesecure EI record 822 to facilitate completion of the transaction request816. For example, the retailer computing device 802 decrypts the securetransaction section of the secure EI record 822 utilizing the public keyof the MP servers 18 to reveal the balance level and a public key of thebuyer's computing device 16 for verification with a public key receiveddirectly from the buyer's computing device 16. The retailer computingdevice 802 indicates favorable verification when the revealed balancelevel is sufficient and the received public key from the buyer'scomputing device 16 compares favorably (e.g., substantially the same) tothe revealed public key from the secure EI record 822. As anotherexample, the retailer computing device 802 verifies a signature over thesecure transaction portion of the secure EI record 822 utilizing thepublic key of the MP servers 18 to verify the balance level and toverify the public key of the buyer's computing device 16. The retailercomputing device 802 indicates favorable verification when the verifiedbalance level is sufficient and the public key from the buyer'scomputing device 16 is verified from the secure EI record 822. As yetanother verification example, the retail computing device 802 decryptsthe hash of the one or more of the elements of the EI information usingthe private key of the EI distributor 800 (e.g., or a brand server(s)26) and indicates favorable verification when the decrypted hash issubstantially the same as a calculated hash over the one or more of theelements of the EI information. As such, the EI can be considered alegitimately issued EI from the brand server(s) 26 (e.g., from the brandowner).

When the verifications are favorable, the retailer computing device 802and the buyer's computing device 16 communicate secure transactioncompletion 820. For example, the buyer's computing device 16 sendspayment instructions to the retailer computing device 802 (e.g.,purchase price, EI information), the buyer's computing device 16generates a block 4 of the EI transactions chain to indicate that thebuyer's computing device 16 is utilizing the EI for the purchase priceamount, where the block 4 is chained to the block 3 in accordance withthe trusted chaining approach, and where the block 4 is generatedutilizing the trust approach (e.g., as utilized when generating theblock 3).

The generating of the block 4 includes generating buyer to retailerpayment information 4 (e.g., a confirmed purchase price, paymentinstructions utilizing the EI, a timestamp of this transaction,purchaser identifier, and the transaction portion of the previousblock), and establishing trust for the block 4 utilizing the trustapproach. For example, the buyer's computing device 16 obtains thepublic key of the private/public key pair of the retailer computingdevice 802, encrypts the buyer to retailer payment information 4 and thepublic key of the retailer computing device 802 utilizing the privatekey of the buyer's computing device 16 to produce the transactionsection of the block 4 when utilizing the encryption trust approach. Asanother example, the buyer's computing device 16 utilizes the privatekey of the buyer's computing device 16 to generate a digital signatureover the buyer to retailer payment information 4 and the public key ofthe retailer computing device 802 to produce the transaction section ofthe block 4.

Having generated the block 4 chained to the block 3, the buyer'scomputing device 16 issues the secure transaction completion 820 to theretailer computing device 802. The issuing includes generating thesecure transaction completion 820 to include the EI transactions chain(e.g., blocks 0-4) and sending the secure transaction completion 820 tothe retailer computing device 802, where the mobile app 198 mayfacilitate storage of an updated transactions chain as an updated secureEI record 822 in the flash memory 92. Alternatively, or in addition to,each of the seller's computing device 12, the MP servers 18, and thebuyer's computing device 16 may validate information within the EItransactions chain by validating the chaining of each block to a nextblock utilizing the trusted chaining approach and may further validateinformation with the EI transactions chain by validating integrity ofthe transaction section of one or more of the blocks utilizing the trustapproach (e.g., verifying a signature, decrypting an encryptedtransaction to reveal a public key for verification).

In another example of operation of the generating of the transactionsblockchain, at least one of the EI distributor 800, the seller'scomputing device 12, and the MP server(s) 18, authenticates value of anexchange item to produce an authenticated value of the exchange item.The exchange item includes one of a closed loop financial instrument anda digital good. The authenticating of the value includes a variety ofauthenticating approaches.

A first authenticating approach includes the seller's computing device12 authenticating the value of the exchange item via a communicationwith a brand server (e.g., issue an authentication request, interpret areceived verification response to identify an available balance of theexchange item associated with the brand server), generating a secureexchange item package, and securely passing, by the seller's computingdevice 12 to the marketplace servers 18, control over the secureexchange item package such that the marketplace server 18 obtains thecontrol over the secure exchange item package. The securely passingincludes updating a transaction section of the secure exchange itempackage by including a public key of a recipient device (e.g., themarketplace servers 18) of the secure exchange item package and signingthe secure exchange item package by a transferring device (e.g., theseller's computing device 12) of the secure exchange item package. Thesecure exchange item package includes a header section and a transactionsection. The secure exchange item package is discussed in greater detailwith reference to FIG. 7C. A second authenticating approach includes theMP server(s) 18 authenticating the value of the exchange item via thecommunication with the brand server, generating the secure exchange itempackage, and obtaining control over the secure exchange item package asa result of being an originator of the secure exchange item package.

With the authenticated value of the exchange item produced, themarketplace servers 18 obtains control over the secure exchange itempackage, where the secure exchange item package includes identity of theexchange item, identity of an authenticated owner of the exchange item,identity of the marketplace server, and the authenticated value (e.g.,face value of the exchange item or remaining balance of the exchangeitem) of the exchange item and where only a device possessing controlover the secure exchange item package may modify the secure exchangeitem package.

As an example of the obtaining of the control, the marketplace servers18 receives from the seller's computing device 12, a request to sell theexchange item (e.g., receives the secure EI information 806). Inresponse to valid processing of the request to sell (e.g., communicatingpricing information 808), the seller's computing device 12 securelypasses, to the marketplace servers 18, control over the secure exchangeitem package (e.g., communicates secure sale information 810). Havingobtained control, the marketplace servers 18 lists a representation ofthe exchange item for sale by storing associated inventory information809 in the database 20 to update the virtual marketplace of exchangeitems 22.

With the exchange item represented within the virtual marketplace ofexchange items 22, the marketplace server 18 receives, from the buyer'scomputing device 16, a request to purchase the exchange item (e.g., theEI purchase request 812). Having received the request to purchase theexchange item, the marketplace servers 18, in response to validprocessing of the request to purchase the exchange item (e.g.,exchanging secure buyer wallet information 814), securely passes to thebuyer computing device 16, control over the secure exchange item package(e.g., via the secure buyer wallet information 814). Having received thesecure buyer wallet information 814, the mobile app 198 stores thesecure buyer wallet information 814 as the secure EI record 822 in theflash memory 92.

For use of the exchange item (e.g., as initiated with the transactionrequest 816), the buyer computing device 16 securely passes, to theretailer computing device 802 (e.g., the merchant server), control overthe secure exchange item package. The use may further include theretailer computing device 802 into verifying that the balance of theexchange item is sufficient for a purchase transaction by communicatingsecure balance verification 818 with the buyer's computing device 16.

With control over the secure exchange item package, the merchant server(e.g., the retailer computing device 802) executes use of the exchangeitem by updating the value of the exchange item to produce an updatedvalue of the exchange item. For example, the retailer computing device802 subtracts an amount of the purchase transaction (e.g., for goodsprovided by a retailer to a user of the buyer's computing device 16)from the value of the exchange item to produce the updated value of theexchange item.

Having generated the updated value of the exchange item, the retailercomputing device 802 generates an updated secure exchange item package,where the updated secure exchange item package includes identity of theexchange item, identity of the merchant server, identity of the buyercomputing device, and the updated value of the exchange item. Havinggenerated the updated secure exchange item package, the merchant server(e.g., the retailer computing device 802) securely passes control overthe updated secure exchange item package to the buyer's computing device16 (e.g., by communicating the secure transaction completion 820).

Alternatively, or in addition to, for a second use of the exchange item,the buyer's computing device 16 securely passes, to a second merchantserver, control over the updated secure exchange item package. Thesecond merchant server executes the second use of the exchange item byupdating the updated value of the exchange item to produce a secondupdated value of the exchange item, generating a second updated secureexchange item package, where the second updated secure exchange itempackage includes identity of the exchange item, identity of the secondmerchant server, identity of the buyer's computing device 16, and thesecond updated value of the exchange item, and securely passes, to thebuyer's computing device 16, control over the second updated secureexchange item package.

FIG. 7B is a schematic block diagram of a transactions blockchain wherethe transactions blockchain includes a plurality of blocks. Thetransactions blockchain represents an exchange item (EI) transactionchain when the plurality of blocks include exchange item transactionsections. Each block includes a header section and a transactionsection. Each other portion links one block to other block in asequential fashion. The linking is discussed in greater detail withreference to FIG. 7C. The transaction section includes EI transactioninformation associated with an EI transaction between two or moreentities of an exchange item marketplace. For example, the block 0includes valuable establishment 0 transaction information with regardsto a genesis of a particular exchange item to be available to entitiesof the exchange item marketplace, the block 1 includes seller todistributor payment information 1 transaction information with regardsto the seller's computing device 12 purchasing the EI from the EIdistributor 800, the block 2 includes marketplace servers 18 to sellerrepresentation/payment information 2 transaction information withregards to the seller's computing device 12 offering the EI for saleutilizing the MP servers 18, the block 3 includes buyer to marketplacepayment information 3 transaction information with regards to thebuyer's computing device 16 purchasing the EI via the MP servers 18 fromthe seller's computing device 12, and the block 4 includes buyer toretailer payment information 4 transaction information with regards tothe buyer's computing device 16 utilizing the EI to complete a desiredpurchase transaction with the retailer computing device 802.

FIG. 7C is another schematic block diagram of a transactions blockchain.The transactions blockchain includes a plurality of blocks, where eachblock includes a secure exchange item package. Each secure exchange itempackage includes a header section and a transaction section. The headersection includes one or more of a nonce, a hash of a preceding block ofthe secure exchange item package, where the preceding block was undercontrol of a preceding device in a chain of control of the secureexchange item package, and a hash of a current block (e.g., a currenttransaction section) of the secure exchange item package, where thecurrent block is under control of a current device in the chain ofcontrol of the secure exchange item package. The transaction sectionincludes one or more of a public key of the current device, a signatureof the preceding device, payment information regarding a change ofcontrol from the preceding device to the current device, and exchangeitem information that includes at least some of the identity of theexchange item, a brand of the exchange item, time restrictions of theexchange item, a digital image of the exchange item, the authenticatedvalue, and use restrictions of the exchange item.

FIG. 7C further includes user devices 2-3 (e.g., the seller's computingdevice 12, the MP servers 18, the buyer's computing device 16, theretailer computing device 802) to facilitate illustration of generationof the secure exchange item package. Each user device includes a hashfunction, a signature function, and storage for a public/private keypair generated by the user device.

An example of operation of the generating of the secure exchange itempackage, when the user device 2 has control of the secure exchange itempackage and is passing control of the secure exchange item package tothe user device 3 (e.g., the user device 3 is transacting an exchangewith the user device 2), the user device 2 obtains the user 3 public keyfrom the user device 3, performs a hash function 2 over the user 3public key and the transaction 2 to produce a hashing resultant (e.g.,preceding transaction to user device 2) and performs a signaturefunction 2 over the hashing resultant utilizing a user 2 private key toproduce a user 2 signature. Having produced the user 2 signature, theuser device 2 generates the transaction 3 to include the user 3 publickey, the user 2 signature, user 3 payment to the user 2 information, andEI information 2-3. The user 3 payment to the user 2 informationincludes payment instructions from user 3 to user 2. The EI information2-3 includes an updated balance of the exchange item (e.g., after thetransaction between the user device 3 and the user device 2), a serialnumber of the exchange item, an expiration date of the exchange item, atype of the exchange item, a brand identifier, an image, a personalidentification number, and utilization rules for the exchange item.

Having produced the transaction 3 section of the block 3 (e.g., a secureexchange item package 3), a processing module (e.g., of the user device2, of the user device 3, of a transaction mining server, of themarketplace server 18) generates the header section by performing ahashing function over the transaction section 3 to produce a transaction3 hash, performing the hashing function over the preceding secureexchange item package (e.g., block 2) to produce a block 2 hash. Theperforming of the hashing function may include generating a nonce suchthat when performing the hashing function to include the nonce of theheader section, a desired characteristic of the resulting hash isachieved (e.g., a desired number of preceding zeros is produced in theresulting hash).

Having produced the secure exchange item package 3, the user device 2sends the secure exchange item package 3 to the user device 3. Havingreceived the secure exchange item package 3, the user device 3 validatesthe received secure exchange item package 3. The validating includes oneor more of verifying the user 2 signature over the preceding transactionsection (e.g., transaction 2) and the actual user 3 public key utilizingthe user 2 public key (e.g., a re-created signature function resultcompares favorably to user 2 signature) and verifying that an extracteduser 3 public key of the transaction 3 compares favorably to the user 3public key held by the user device 3. The user device 3 considers thereceived secure exchange item package 3 validated when the verificationsare favorable (e.g., the available balance of the exchange item istrusted).

FIG. 7D is a logic diagram of an embodiment of a method for generating atransactions blockchain. In particular, a method is presented for use inconjunction with one or more functions and features described inconjunction with FIGS. 1-6, 7A-C, and also FIG. 7D. The method includesstep 830 where a processing module of a computing device of one or morecomputing devices of an exchange item marketplace network authenticatesvalue of an exchange item to produce an authenticated value of theexchange item, where the exchange item includes one of a closed loopfinancial instrument and a digital good.

As an example of the authenticating the value of the exchange item, aseller device authenticates the value of the exchange item via acommunication with a brand server, generates a secure exchange itempackage, and securely passes, to the marketplace server, control overthe secure exchange item package such that the marketplace serverobtains the control over the secure exchange item package. The securelypassing includes updating a transaction section of the secure exchangeitem package by including a public key of a recipient device of thesecure exchange item package and signing the secure exchange itempackage by a transferring device of the secure exchange item package.The secure exchange item package includes a header section and atransaction section. As another example of the authenticating the valueof the exchange item, the marketplace server authenticates the value ofthe exchange item via a communication with the brand server, generatesthe secure exchange item package, and obtains control over the secureexchange item package as a result of being an originator of the secureexchange item package.

The method continues at step 832 where the marketplace server obtainscontrol over the secure exchange item package, where the secure exchangeitem package includes identity of the exchange item, identity of anauthenticated owner of the exchange item, identity of the marketplaceserver, and the authenticated value (e.g., face value of the exchangeitem and/or a remaining balance of the exchange item) of the exchangeitem and where only a device possessing control over the secure exchangeitem package may modify the secure exchange item package. As an exampleof the obtaining of the control, the marketplace server receives, fromthe seller device, a request to sell the exchange item and in responseto valid processing of the request to sell, the seller device securelypasses, to the marketplace server, control over the secure exchange itempackage.

The method continues at step 834 where the marketplace server receives,from a buyer device, a request to purchase the exchange item. Inresponse to valid processing of the request to purchase the exchangeitem, the method continues at step 836 where the marketplace serversecurely passes, to the buyer device, control over the secure exchangeitem package. For use of the exchange item, the method continues at step838 where the buyer device securely passes, to a merchant server,control over the secure exchange item package.

The method continues at step 840 where the margin server executes use ofthe exchange item by updating the value of the exchange item to producean updated value of the exchange item (e.g., deducting a purchase priceof a purchase transaction from the value of the exchange item to producethe updated value the exchange item). The method continues at step 842where the merchant server generates an updated secure exchange itempackage, where the updated secure exchange item package includesidentity of the exchange item, identity of the merchant server, identityof the buyer device, and the updated value of the exchange item. Themethod continues at step 844 where the merchant server securely passes,to the buyer device, control over the updated secure exchange itempackage.

Alternatively, or in addition to, for a second use of the exchange item,the buyer device securely passes, to a second merchant server, controlover the updated secure exchange item package. The second merchantserver executes the second use of the exchange item by updating theupdated value of the exchange item to produce a second updated value ofthe exchange item, generates a second updated secure exchange itempackage, where the second updated secure exchange item package includesidentity of the exchange item, identity of the second merchant server,identity of the buyer device, and the second updated value of theexchange item, and securely passing, to the buyer device, control overthe second updated secure exchange item package.

The method described above in conjunction with one or more of theprocessing module, the seller device, the marketplace server, the buyerdevice, the merchant server, the second merchant server, canalternatively be performed by other modules of the exchange itemmarketplace network or by other devices. In addition, at least onememory section (e.g., a non-transitory computer readable storage medium,a computer readable memory) that stores operational instructions can,when executed by one or more processing modules of one or more computingdevices of the exchange item marketplace network, cause the one or morecomputing devices to perform any or all of the method steps describedabove.

FIG. 7E is a logic diagram of another embodiment of a method forgenerating a transactions blockchain. In particular, a method ispresented for use in conjunction with one or more functions and featuresdescribed in conjunction with FIGS. 1-6, 7A-D, and also FIG. 7E. Themethod includes step 850 where a processing module of a computing device(e.g., of an exchange item origination entity) of one or more computingdevices of an exchange item marketplace network generates an originationblock of an EI transaction chain, where the EI origination entity signsa transaction portion of the origination block, and where thetransaction portion indicates EI information of an associated EI. Forexample, the origination entity generates value establishmentinformation in accordance with a trust approach (e.g., self-signing overthe value establishment information to produce the transaction portion,signing the value establishment information, that includes a public keyof a private/public key pair of the EI origination entity, utilizing theprivate key to produce the transaction portion).

When receiving an EI purchase request from a seller computing device,the method continues at step 852 where a processing module of an EIdistribution entity generates a first block of the EI transactionschain, where the EI distribution entity signs the transaction portion ofthe first block, where the transaction portion indicates that the sellercomputing device is purchasing the EI from the distribution entity, andwhere the first block is chained to the origination block in accordancewith a chained security approach (e.g., hash of transaction portion,hash of a previous block). The EI distribution entity may be implementedutilizing the EI origination entity. For example, the EI distributionentity signs the transaction portion utilizing a private key of aprivate/public key pair of the seller computing device to produce thetransaction portion of the first block.

When transacting a representation of the EI with a marketplace server,the method continues at step 854 where the seller computing devicegenerates a second block of the EI transactions chain, where the sellercomputing device signs a transaction portion of the second block, wherethe transaction portion indicates that the MP server is representing theEI for the seller computing device, and where the second block ischained to the first block in accordance with the chained securityapproach. For example, the MP server receives secured EI informationfrom the seller computing device (e.g., an offer for sale), providespricing information to the seller computing device, receives a confirmedprice from the seller computing device, issues secure sale informationto the seller computing device, and updates inventory information withina virtual exchange item marketplace, where the secure sale informationincludes the second block of the EI transactions chain and a public keyof the NIP server.

When receiving a purchase request for the EI from a buyer computingdevice, the method continues at step 856 where the NIP server generatesa third block of the EI transactions chain, where the NIP server signs atransaction portion of the third block, where the transaction portionindicates that the buyer computing device is purchasing the EI from theseller computing device via the marketplace, and where the third blockis chained to the second block in accordance with the chained securityapproach. For example, the buyer computing device issues an EI purchaserequest to the NIP server based on received inventory information fromthe NIP server, the NIP server generates secure buyer walletinformation, the buyer computing device stores a security EI record,where the secure buyer wallet information includes the third block ofthe EI transactions chain and the secure EI record includes the EItransactions chain. For instance, the MP server signs a public key ofthe buyer computing device and the transaction portion utilizing aprivate key of a private/public key pair of the MP server to produce thetransaction portion of the third block.

When utilizing the EI for payment in a purchasing transaction with aretailer computing device, the method continues at step 858 where thebuyer computing device generates a fourth block of the EI transactionschain, where the buyer computing device signs a transaction portion ofthe fourth block, where the transaction portion indicates that the buyercomputing device is utilizing the EI for payment in the purchasingtransaction, and where the fourth block is chained to the third block inaccordance with the chained security approach. For example, the buyercomputing device issues a transaction request to the retailer computingdevice, the retailer computing device exchanges secure balanceinformation with the buyer computing device (e.g., verifies the trust ofthe EI transactions chain, where the EI transactions chain indicates anavailable balance of the EI verifying that an available balance issufficient), the retailer computing device issues secure transactioncompletion information to the buyer computing device, where the securetransaction completion information includes the fourth block of the EItransactions chain. The buyer computing device signs the public key ofthe retailer computing device and the transaction portion to produce atransaction portion of the fourth block. Alternatively, or in additionto, each entity of the plurality of transactions may verify the EItransactions chain by verifying a stored public key matches to recoveredpublic keys when validating signatures over associated blocks.

The method described above in conjunction with the exchange itemorigination entity, the seller computing device, the buyer computingdevice, and the retailer computing device can alternatively be performedby other modules of the exchange item marketplace network or by otherdevices. In addition, at least one memory section (e.g., anon-transitory computer readable storage medium, a computer readablememory) that stores operational instructions can, when executed by oneor more processing modules of one or more computing devices of theexchange item marketplace network, cause the one or more computingdevices to perform any or all of the method steps described above.

FIG. 8A is a logic diagram of an embodiment of a method for utilizing anexchange item in an exchange item marketplace network. The methodincludes step 860 where a processing module (e.g., of a brand server, ofa marketplace server) creates one or more exchange items to be offeredfor sale through the exchange item marketplace network. The methodcontinues at step 862 where an initial owner acquires at least one ofthe EIs. The method continues at step 864 where a processing module ofthe exchange item marketplace network establishes initial conditions.Conditions includes types of conditions and values for the types ofconditions. For example, a weather condition is associated with a valueof a current temperature. As another example, a sports team score isassociated with a particular game outcome. Other examples of conditiontypes include stock prices, world events, purchase history of usersassociated with the exchange item marketplace, pricing historyassociated with exchange items, a physical location, a customer name, amerchant name, a brand-name, a date, a time, etc.

The establishing of the conditions includes utilizing thepredetermination, interpreting the lookup, interpreting a queryresponse, receiving the conditions, identifying the conditions based onor more of identification of the initial owner, identification of thebrand of the EI, an EI type indicator, and EI serial number, and an EIutilization rule, etc. For example, the marketplace server performs alookup based on a serial number of the exchange item to establish theinitial conditions.

The method continues at step 866 where the processing module determineswhether the EI has been used (e.g., redeemed, utilized for making apurchase, bartered, etc.). The determining includes interpreting astatus associated with the EI of an exchange item database, interpretinga received a use message, receiving purchase transaction information,etc. the method branches to step 874 when the processing moduledetermines that the EI has not been used. The method continues to step868 when the processing module determines that the EI has been used.

When the EI has been used, the method continues at step 868 where theprocessing module processes the EI use. The processing includes one ormore of facilitating completion of a purchase transaction, facilitatingpayment distribution, and updating the exchange item database toindicate the use. The method continues at step 870 where the processingmodule determines whether the EI is exhausted (e.g., no value left). Thedetermining includes comparing a balance value associated with the EI toa minimum threshold level (e.g., zero dollars). For example, theprocessing module indicates that the EI has been exhausted when thebalance value is zero. The method looks back to step 866 when the EI isnot exhausted. The method continues to step 872 when the EI is exhaustedwhere the EI is retired. Alternatively, and in accordance with a ruleassociated with exchange item, the processing module maintains the zerobalance exchange item without retiring the exchange item (e.g., to keepopen an opportunity to refresh the exchange item). The retiring includesthe processing module updating the exchange item database to indicatethat the EI has been exhausted and retired from use.

When the EI has not been utilized, the method continues at step 874 witha processing module determines whether the EI is to be offered for sale.The determining includes receiving a request to offer the EI for sale,interpreting a rule with regards to sale, interpreting a statusassociated with the EI, and receiving a purchase request for the EI. Themethod branches to step 878 when the EI is not to be offered for sale.The method continues to step 876 when the EI is to be offered for salewhere the processing module posts the EI in the marketplace. Forexample, the processing module updates the exchange item database toindicate that the EI is for sale.

The mother continues at step 878 where the processing module determineswhether the EI has been sold. The determining includes one or more ofreceiving purchase transaction information, interpreting a request forpurchase of the EI, and interpreting a status associated with the EI inthe exchange item database. The method branches to step 882 when the EIhas not been sold. The method continues to step 880 when the EI has beensold where the processing module processes the sale and updatesinformation. For example, the processing module updates the exchangeitem database to indicate that the EI has been sold, the purchaseamount, and identification of the (new) owner.

The method continues at step 882 where the processing module updates theconditions. For example, the processing module obtains updated date andtime information, sports scores, stock market information, world eventsinformation, and weather information. With the conditions updated,utilization and sale of other exchange items may be affected asdifferent use rules associated with the different exchange items mayunable shifts in parameters associated with exchange items. For example,an additional discount for a particular branded exchange item may beenabled when a temperature value of a temperature condition is less thana low threshold value. As another example, a balance of another exchangeitem may be increased by 10% for a two-hour time frame when a localbaseball team wins a game and the exchange item is associated with abrand of the local baseball team. Having updated the conditions, themethod loops back to step 866.

FIG. 8B is a logic diagram family of an embodiment of a method forutilizing rules in an exchange item (EI) marketplace network. A rule isassociated with utilization of an exchange item. The rule may be imposedby one or more of an issuing brand, a merchant, an alternative brand,and by a marketplace server of the exchange item marketplace. A rulespecifies allowable values or ranges of values of parameters associatedwith an exchange item is a function of one or more conditions and of oneor more use options. Rules be imposed independently (e.g., alone withoutany interaction with other rules), in series (e.g., first rule invokedfollowed by a second rule invoked), in parallel (e.g., operating two ormore rules together, and may interact where a first rule status may beutilized by a second rule), or in a nested fashion (e.g., where a ruleis triggered when a value associated with a preceding rule comparesfavorably to a trigger threshold level). Each EI rule is associated witha rule lifecycle, which includes creation of the EI rule, and mayinclude invoking of the EI rule and updating of the EI rule and/or of anassociated EI of the EI rule (e.g., updating a marketplace serverdatabase).

A method associated with the creation of the EI rule includes step 890where a processing module (e.g., by a brand server, by a marketplaceserver) determines whether an exchange item (EI) rule has been invoked.The determining may be based on one or more of interpreting values ofconditions in accordance with the EI rule, receiving a messageindicating that the rule has been invoked, and detecting an activityassociated with the invoking of the rule. The method branches to steps892 and 894 when the EI rule has been invoked. The method branches tostep 902 when the EI rule has not been invoked where the processingmodule determines whether the EI rule has changed. The determining maybe based on one or more of interpreting a change flag, receiving achange message, observing activity associated with a change of the rule,and comparing a previous EI rule to the EI rule. The method continues tostep 904 when the EI rule has not been changed where the processingmodule determines whether the EI rule has expired (e.g., detecting thatan active timeframe associated with the EI rule has elapsed). The methodloops back to step 890 when the EI rule has not expired.

When the EI rule has been invoked, the method continues at step 892where the processing module notifies a current owner of the invoked EIrule (e.g., issuing a message to a brand server that established (i.e.,owner) the rule) and the method continues at step 894 where theprocessing module updates the EI based on the invoked EI rule. Theupdating includes modifying a record of the EI in the marketplace serverdatabase immediately or upon receiving a permissions grant from theowner, modifying the record of the EI in the marketplace serverdatabase.

The method continues at step 896 where the processing module determineswhether the EI rule has been revoked. The determining may be based onone or more of interpreting updated conditions associated with the EIrule and indicating that the EI rule has been revoked and receiving amessage indicating that the EI rule has been revoked (e.g., from a brandserver). The method loops back to step 890 when the EI rule has not beenrevoked. The method continues to steps 898 and 900 when the EI rule hasbeen revoked. The method continues at step 898 where the processingmodule notifies the current owner of the revoked EI rule (e.g., issuingan EI revoked message) and updates the associated EI based on therevoked EI rule (e.g., updates the marketplace server database).

A method associated with the invoking of the EI rule includes step 906where the processing module tracks conditions for exchange items of arule set. For example, the processing module receives conditions dataassociated with a plurality of conditions types and maps the conditionsdata a plurality of exchange items associated with rules that rely onthe conditions to activate a course of action. The method continues atstep 908 where the processing module, per exchange item, determines whena condition conforms to a rule to invoke the rule. For example, theprocessing module indicates to invoke the rule when a condition of therule meets a threshold level.

A method associated with the updating of the EI rule includes step 910where the marketplace server takes control of the exchange item. Thetaking of control includes invoking a rule that includes grantingupdating authority for the marketplace server. With the authority toupdate the exchange item in the marketplace server database, themarketplace server may modify a rule, add a rule, delete a rule, addconditions associated with a rule, delete conditions associated with arule, and modify conditions associated with a rule.

The method continues at step 912 where the marketplace server updatesthe exchange item. For example, the marketplace server recovers aportion (e.g., a single transaction blockchain including a ledger of allexchange items) of the marketplace server database and modifies therecovered portion (e.g., modifies the blockchain) to produce an updatedportion of the marketplace server database. The method continues at step914 where the marketplace server signs the updated exchange item. Forexample, the marketplace server utilizes a private key of apublic/private key pair of the marketplace server to electronically signthe updated exchange item to produce a signature of the marketplaceserver. The method continues at step 916 where the marketplace serverreturns control of the signed updated exchange item. For example, themarketplace server stores the signed updated exchange item into themarketplace or database and pushes the signed updated exchange item toone or more entities of the exchange item marketplace network. Forinstance, the marketplace server sends the signed updated exchange itemto a computing device associated with purchase of the exchange item. Asanother instance, the marketplace server sends the signed updatedexchange item to a brand server associated with the exchange item. Sucha signed updated exchange item is illustrated where exchange item serialnumber 5, that is associated with owner AA, includes conditions e3, f6,p5 that is associated with the exchange item 5, and that now follows arule set 4.

FIG. 8D is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the initial ownercomputing device 928 of FIG. 6, the EI issuing server 920 of FIG. 6, theEI trusted module 922 of FIG. 6, the marketplace server 18 of FIG. 6,and the marketplace database 20 of FIG. 6. Entities of the exchange itemmarketplace network may be operably coupled through the network 24 ofFIG. 6 or may be directly connected to each other. The exchange itemmarketplace functions to establish agreements and set up exchange items.Such agreements include terms for one or more of creation of exchangeitems (EI), creation of EI rules for the exchange items, identificationof condition types and condition values to be utilized in conjunctionwith the EI rules, and facilitating payment for sale and/or utilizationof an exchange item. The agreements may involve two or more parties,such as a brand, a merchant, and an alternative brand. For example, anagreement between a brand and a merchant associated with the brandindicates a discount range associated with a particular exchange item.As another example, an agreement between a brand and the alternativebrand indicates which products may be purchased using an exchange itemnot associated with the product. Agreement information includes one ormore agreement points of each agreement (e.g., value, discount, balance,permissions, etc.).

In an example of operation of the establishing of the agreements andsetting up of the exchange items, the setup (i.e., or set up) processing936 of the marketplace server 18 establishes the agreement database 930.The establishing includes receiving agreement information and updatingthe agreement database 930 within the marketplace database 20. Forexample, the marketplace server 18 issues a query to one or more of theEI issuing server 920, another issuing server, a merchant server,another merchant server; and receives a query response. As anotherexample, the marketplace server 18 receives an unsolicited messageincluding the agreement information. Having received the agreementinformation, the marketplace server updates the agreement database 930.The agreement database 930 correlates issuer information, merchantinformation, and agreement information. For example, the agreementdatabase 930 associates issuer A_1 with a merchant A_1_n as bound by anagreement aa (e.g., including one or more agreement points).

Having established the agreements, the marketplace server 18 facilitatessetting up of the exchange items to include establishment of exchangeitem (EI) rules. An initiating entity establishes a first rule for a newexchange item. The initiating entity includes at least one of the EIissuing server 920 and the set of processing hundred and 36 of themarketplace server 18. The first rule is associated with establishmentof a security approach to ensure that and subsequent rules associatedwith the EI can be trusted by all marketplace participants as timeproceeds. For example, the EI issuing server 920 establishes trustinformation 954 to include a first contract block of a contractblockchain, where private/public key pairs are utilized to ensure trustas previously discussed with reference to FIGS. 7A-E. The first contractblock establishes the EI issuing server 920 as the owner (e.g., a rootof the contract blockchain).

The initiating entity further establishes the new exchange item. Forexample, the EI issuing server 920 establishes EI information 950 (e.g.,value, type, issuance date, expiration date, use parameters, etc.). Theinitiating entity further establishes content of the first rule, andfurther content of other rules as an EI rule set 952. For example, theEI issuing server 920 utilizes a 4^(th) set of EI rules and an EI ofserial number 5 for issuer B_K (e.g., identity of the EI issuing server920) to include EI 05 info. The EI005 is to be for sale and is bound bya fourth set of EI rules which are associated with conditions e3, f6, p5in accordance with use options of the issuer B_K. Having obtained the EIinformation 950 and the EI rule set 952, the set up processing 936verifies the received EI information and set by exchanging set upverification 956 with the EI trusted module 922. For example, the EItrusted module 922 verifies the contract blockchain and sends anindication of a status of the verification to the marketplace server 18.

When the EI information 950 in the EI rule set 952 have been verified,set of processing 936 updates the exchange item database 934 of themarketplace database 20 with the EI information 950 in the EI rule set952. For instance, the setup processing 936 establishes the role of theexchange item database 934 associated with the EI serial number 005. Theset of processing 936 may further update the user database 932 toinclude a list of known users of the marketplace, a history of EIbuying, selling, and using. For example, the set of processing 936updates the user database 932 when the initial owner computing device928 (e.g., owner AA) purchases the new EI by exchanging set upinformation 958 with the marketplace server 18. The initial ownercomputing device 928 updates a digital wallet 946 of the initial ownercomputing device 928 with an owner table. The owner table includes oneor more of a list of EI serial numbers, and for each EI, an identifierof an issuer, associated EI information, use options, EI rulesassociated with the EI, and conditions associated with the EI.Alternatively, or in addition to, the marketplace server maintains acopy of the owner table in the marketplace database 20.

FIG. 8E is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the initial ownercomputing device 928 of FIG. 6, the EI buyer computing device 926 ofFIG. 6, the EI trusted module 922 of FIG. 6, the marketplace server 18of FIG. 6, and the marketplace database 20 of FIG. 6. The exchange itemmarketplace functions to process a sale of an exchange item (EI) fromthe initial owner computing device 928 to the EI buyer computing device926.

In an example of operation of the processing of the sale of the EIserial number 005 by the initial owner computing device 928 (e.g., ownerAA) the EI buyer computing device 926 (e.g., owner DZ), the saleprocessing 938 of the marketplace server 18 exchanges sale information966 with the initial owner computing device 928, where the saleinformation 966 includes one or more of the EI serial number 005, a saleprice, use options, a commission amount (e.g., to the marketplace), andcredit information (e.g., a 05 credit of generic value usable in themarketplace to purchase another EI or to be converted into another formof payment). The initial owner computing device 928 updates the digitalwallet 946 to indicate that the EI serial number 005 has been sold andthat the 05 credit is available.

The sale processing 938 further exchanges sale verification 968 with theEI trusted module 922. For example, the EI trusted module 922 verifiesthe contract blockchain and a transaction blockchain associated with theEI to ensure that the sale is within sale allowance parametersassociated with the EI as imposed by one or more of an agreement, and EIrule, conditions, and use options. When verified, the EI trusted module922 issues the sale verification 968 to the sale processing 938indicating that the sale is verified.

The sale processing 938 further exchanges purchase information 970 withthe EI buyer computing device 926, such that the EI buyer computingdevice 926 updates the digital wallet 944 indicating that owner DZ hasthe EI serial number 005. Having processed the sale of the EI 005, thesale processing 938 updates the marketplace database 20 indicating thatthe EI serial 005 is now associated with owner DZ and is not currentlyfor sale.

FIG. 8F is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the EI buyer computingdevice 926 of FIG. 6, the EI trusted module 922 of FIG. 6, the merchantserver 924 FIG. 6, the marketplace server 18 of FIG. 6, and themarketplace database 20 of FIG. 6. The exchange item marketplacefunctions to process use of an exchange item (EI) by the EI buyercomputing device 926 with the merchant server 924.

In an example of operation of the use of the EI, the EI buyer computingdevice 926 obtains EI info from the digital wallet 944 to issue buyeruse information 976 to the marketplace server 18 when desiring toutilize the exchange item (e.g., EI serial number 005) with a merchantassociated with the merchant server 924 for purchase of goods and/orservices. When receiving the buyer use information 976, the useprocessing 940 of the marketplace server 18 verifies the use byexchanging use verification 978 with the EI trusted module 922. The useverification 978 includes one or more of the buyer use information 976and an associated row of the exchange item database 934 associated withthe exchange item (e.g., the row associated with the exchange itemserial number 005). For example, the EI trusted module 922 verifies thatthe use of the EI compares favorably with the associated rules,conditions, and use options.

When receiving favorable use verification 978, the use processing 940exchanges merchant use information 980 with the merchant server 924 tocomplete the use of exchange item. Alternatively, the marketplace server18 receives the merchant use information 980 from the merchant server924 via the EI buyer computing device 926 as part of the buyer useinformation 976 (e.g., a secure blockchain element is generated by themerchant server 924 and communicated directly to the EI buyer computingdevice 926).

The merchant use information 980 includes one or more of the buyer useinformation 976, the use verification 978, and any additionalinformation to complete the use of the EI. Upon completion of the use ofthe EI, the use processing 940 updates the exchange item database 934indicating that the EI has been utilized (e.g., indicating an amount ofan outstanding balance utilized and a remaining available balance etc.).Alternatively, or in addition to, the use processing 940 performs amerchant verification process in accordance with a rule associated withthe exchange item. For example, the use processing 940 extracts securityinformation from the merchant use information 980, exchanges useinformation 976 with the EI trusted module 922, and interprets a useverification 978 response from the EI trusted module 922 to determinewhether the merchant server 924 is verified (e.g., non-fraudulent). TheEI trusted module 922 may verify the merchant server 924 by a variety ofapproaches including accessing a database of fraudulent merchants,invoking a rule of an associated exchange item to test a pluralityparameters associated with the merchant use information 980, andrequesting that the merchant server 924 electronically sign a message toverify that the merchant server 924 holds a correct private keyassociated with a previously verified merchant server 924.

FIG. 8G is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the EI buyer computingdevice 926 of FIG. 6, the EI issuing server 920, the EI trusted module922 of FIG. 6, the marketplace server 18 of FIG. 6, and the marketplacedatabase 20 of FIG. 6. The exchange item marketplace functions toprocess rules associated with an exchange item (EI).

In an example of operation of the processing of the rules, the ruleprocessing 942 of the marketplace server 18 records conditions for aplurality exchange items. A condition of the conditions for theplurality of exchange items further includes one of a range of time, arange of dates, a geographic location, a building address, a list ofitems, a user tendency profile, and a user loyalty profile. For example,the marketplace server 18 obtains the condition from a correspondingcondition source.

For an exchange item of the plurality of exchange items, where theexchange item has a quantifiable value (e.g., valid tender, offeredsomething formally in writing, offered a sum for a settlement, same asmoney, offer made to settle something), a serial number, and a currentowner, the rule processing 942 determines whether a correspondingcondition of the exchange item is compliant with one or more rules of anapplicable set of rules (e.g., a contract regarding the exchange itemfrom the issuer, where a set of rules is utilized for each EI, or for agroup of EIs, for each owner, by brand, by retailer, etc.). Thedetermining includes utilizing a sliding scale of compliance (e.g.,conditional chaining) based on one or more of a user profile, exchangeitem information, an exchange item issuer, limited exchange item use,and timing of use. For example, the rule processing 942 obtainsinformation with regards to conditions and EI rules from the exchangeitem database 934 and interprets conditions data in accordance with theEI rules to determine the compliance. For example, the rule processing942 indicates that a weather rule is compliant when a temperaturecondition indicates a temperature value that is greater than atemperature threshold value associated with the weather rule.

The rule processing 942 may verify the compliance with the EI rule byobtaining issuer rule information 986 from the EI issuing server 920associated with the EI and by further verifying compliance by exchangingrule verification 990 with the EI trusted module 922. The verifying ofcompliance further includes verifying a security scheme (e.g., contractblockchain or the EI rules) and by checking that the EI rule comparesfavorably to the issuer rule information 986 from the EI issuing server920.

The rule processing 942 may update the applicable set of rules based onone or more of a rule changing, a rule expiring, and a new rule beingadded to the set. For example, the rule processing 942 updates theexchange item database 934 and sends owner rule info 988 to the EI buyercomputing device 926 to indicate an EI rule change associated with aparticular EI when current conditions and a previous rule indicatechanging the rule when the conditions are compliant.

The rule processing 942 may further determine a specific use as the oneor more rules of the applicable rule set (e.g., for a specific product,a specific store, etc.). For example, the rule processing 942 identifiesraising a discount level for the exchange item in accordance with the EIrule as the specific use in accordance with the EI rule and favorableconditions to alter the discount level. Alternatively, or in additionto, the rule processing 942 determines a specific time frame as the oneor more rules of the applicable rule set (e.g., for a set period oftime, a day, etc.). For example, the rule processing 942 identifies atwo-hour time window for the raised discount level for the exchange itemin accordance with the one or more rules.

When the corresponding condition of the exchange item is compliant withthe one or more rules, the rule processing 942 establishes a securecommunication with a computing device affiliated with a current owner(e.g., of the exchange item and/or of the contract blockchain) to takecontrol of the exchange item (e.g., to update an exchange item record ofthe exchange item). Having control includes holding a private keyassociated with modifying a blockchain associated with the exchangeitem. For example, the rule processing 942 exchanges a secure owner ruleinformation 988 with the EI buyer computing device 926 associated withan exchange item serial number 005, where the rule processing 942, inaccordance with a security rule, is allowed to modify the contractblockchain with regards to the EI rules.

While having control over the exchange item, the rule processing 942securely modifies the quantifiable value of the exchange item based onthe one or more rules to produce a modified exchange item. For example,the rule processing 942 adds another contract block to the contractblockchain, where the additional contract block includes a modifiedexchange item as modified exchange item info serial number 005. Themodifying of the quantifiable value includes increasing the quantifiablevalue for the specific use when the specific use is utilized as the oneor more rules of the applicable rule set and securely modifying thequantifiable value of the exchange item in accordance with theblockchain protocol.

Having modified the quantifiable value of the modified exchange item,the rule processing 942 sends a notification message (e.g., owner ruleinformation 988) to the computing device (e.g., the EI buyer computingdevice 926) regarding the increased quantifiable value and the specificuse. Having received the notification message, the EI buyer computingdevice 926 stores the (modified) exchange item in accordance with theblockchain protocol (e.g., stores the contract blockchain including thenew contract block in the digital wallet 944).

The modifying of the quantifiable value may further include increasingthe quantifiable value for use during the specific time frame when thespecific time frame is utilized as the one or more rules of theapplicable rule set (e.g., an increase discount level for the next twohours). Having modified the quantifiable value, the rule processing 942sends another notification message to the computing device regarding theincreased quantifiable value and the specific time frame.

While having control over the exchange item, the rule processing 942further prevents the computing device or another computing device fromaccessing the exchange item. For example, the rule processing 942 issuesowner rule information 988 to the EI buyer computing device 926indicating that the exchange item is not to be utilized while beingmodified. Alternatively, or in addition to, the rule processing 942updates the exchange item database 934 indicating that the exchange itemis not to be accessed while being modified. When completing themodification, the rule processing 942 releases, via the securecommunication, control of the modified exchange item to the computingdevice affiliated with the current owner. For example, the ruleprocessing 942 issues yet another owner rule information 988 to the EIbuyer computing device 926 indicating that the exchange item has beenupdated and released.

With the exchange item updated, and when the specific time frame expires(e.g., when utilized) and the modified exchange item is unused (e.g.,the EI buyer computing device 926 has not used the modified exchangeitem at all), the rule processing 942 facilitates reverting of theexchange item. The reverting of the exchange item includes one or moreof establishing another secure communication with the computing deviceaffiliated with exchange item to take control of the modified exchangeitem and while having control over the modified exchange item,decreasing the increased quantifiable value to the quantifiable value toproduce a reverted exchange item, preventing the computing device oranother computing device from accessing the exchange item, releasing,via the other secure communication, control of the reverted exchangeitem to the computing device affiliated with the current owner, andsending another notification message to the computing device regardingthe reverted exchange item.

Alternatively, when the specific time frame expires, and the modifiedexchange item was used but did not exhaust the quantifiable value, therule processing 942 facilitates producing a further modified EI. Thefacilitating to produce the further modified EI includes one or more ofidentifying another rule of the applicable set of rules to furthermodify the modified exchange item, establishing another securecommunication with the computing device affiliated to take control ofthe modified exchange item, and while having control over the modifiedexchange item, the rule processing 942 increases a remainingquantifiable value to produce a further modified exchange item, preventsthe computing device or another computing device from accessing to themodified exchange item, releases, via the other secure communication,control of the further modified exchange item to the computing deviceaffiliated with the current owner, and sends another notificationmessage to the computing device regarding the further modified exchangeitem.

With the modified exchange item, the EI buyer computing device 926 mayutilize the modified exchange item in conjunction with a purchasetransaction from a merchant. For example, the EI buyer computing device926 sends a use request to another server (e.g., a merchant server)regarding the modified exchange item (e.g., to utilize the modified EIfor the purchase transaction). Having received the use request, theother server sends a use notification to the marketplace server 18.Having received the use notification, the rule processing 942 of themarket place over 18 establishes a second secure communication with thecomputing device affiliated with the current owner to take control ofthe modified exchange item (e.g., exchanges owner rule information 988with the EI buyer computing device 926).

While having control over the exchange item, the marketplace server 18securely adjusts the quantifiable value of the exchange item based onthe use notification to produce an adjusted exchange item (e.g.,decrements a remaining balance by an amount of the purchase transactionand updates one or more of a transaction blockchain and the contractblockchain) and prevents the computing device, the other server, orother computing devices from accessing the exchange item. Once modified,the marketplace server 18 releases, via the second secure communication,control of the adjusted exchange item to the computing device affiliatedwith the current owner.

FIG. 8H is a diagram of an exchange item (0) database 934 that includesa variety of fields. The variety of fields includes an EI serial number,and issuer, and owner, EI information, conditions, EI rules, offer forsale, use options, blockchain control, and blockchain location when ablockchain approach is utilized as a security mechanism for entitiestrading in the EI to verify attributes associated with the EI. Forexample, a transaction blockchain is associated with transactions frombirth of the EI to complete utilization/retirement of the EI and acontract blockchain associated with EI rule changes as time progresses.A structure of the transaction blockchain and the contract blockchain isdiscussed in greater detail with reference to FIG. 8J.

To ensure favorable security, a controlling entity desiring to modifythe blockchain must be associated with control of the blockchain asindicated by the blockchain control field of the exchange item database934. The controlling entity may change from one entity to another duringthe EI lifecycle and may further be constrained as indicated by the EIrules. For example, a particular blockchain may be controlled by the EIissuer in the beginning and later controlled by the marketplace serverin accordance with the EI rules established by the EI issuer. As anotherexample, the blockchain may be controlled by the merchant server toupdate rules and conditions to support a particular promotion as allowedby the original and current EI rules.

A most recent revision of a particular blockchain may be temporarilystored in one or more entities of the exchange item marketplace asindicated by the blockchain location field. As such, the controllingentity may utilize the exchange item database 934 to identify the entitywhere the blockchain is temporarily stored to gain access to theblockchain for modification in accordance with the rules and conditions.

FIG. 8J is another schematic block diagram of a transactions blockchainthat includes a series of transaction blocks. Each transaction blockincludes a security bridge from a last block to this block (e.g., hashover previous block and a previous nonce, and a hash over a currentblock and a current nonce), transaction information, a signature by acurrent seller over the transaction info, and a contract blockchain. Thetransaction information includes a next purchaser public key (e.g., apublic key of a public/private key pair of the next purchaser associatedwith a next transaction), payment information, and EI information. Thepayment information includes payment information (e.g., payment amount,payment source, etc.) from the next purchaser to the current sellerassociated with the current block. The signature is created by thecurrent seller signing the transaction information utilizing the privatekey of a public/private key pair of the current seller.

The contract blockchain includes one or more contract blocksrepresenting changes to rules and/or conditions of the EI of the EIinformation. For example, the contract blockchain includes a completecontract blockchain for substantially all of the rules and/or conditionschanges. As another example, the contract blockchain includes at leastone contract block associated with the transaction block. Alternatively,or in addition to, the contract blockchain is maintained separately andis not included within the transaction block. Further alternatively, asingle combined transaction and contract blockchain is maintained as oneentity.

Each contract block includes a security bridge from a last block to thisblock, a contract package (from a last contract block to this contractblock), and a signature by a current rules owner over the contractpackage. Each contract package includes at least one next owner publickey (e.g., associated with an exchange item marketplace entity expectedto be a next owner of the contract blockchain), and contractinformation. The contract information includes one or more of EI rules,conditions, use options, EI information, agreements, merchantidentifiers, issuer identifier, EI serial number, owner identifier, anoffer for sale indicator, etc. The signature over the contract packagescreated by a current owner of the contract blockchain signing thecontract package utilizing a private key of a public/private key pairassociated with the current owner of the contract blockchain. The one ormore blockchains may be verified from time to time utilizingindustry-standard mining approaches and are applicable to both proof ofwork, proof of stake, and other hybrid mining techniques.

FIG. 8K is a logic diagram of an embodiment of a method for modifying anexchange item in an exchange item marketplace network. In particular, amethod is presented for use in conjunction with one or more functionsand features described in conjunction with FIGS. 1-7E, 8A-J, and alsoFIG. 8K. The method includes step 1000 where a processing module of aserver (e.g., a marketplace server of a communication system) recordsconditions for a plurality of exchange items. For an exchange item ofthe plurality of exchange items, where the exchange item has aquantifiable value, a serial number, and a current owner, the methodcontinues at step 1002 where the processing module determines whether acorresponding condition of the exchange item is compliant with one ormore rules of an applicable set of rules. The determining may includedetermining a specific use as the one or more rules of the applicablerule set. The determining may further include determining a specifictime frame as the one or more rules of the applicable rule set. Thedetermining may yet further include utilizing a sliding scale ofcompliance based on one or more of a user profile, an exchange iteminformation, exchange item issuer, limited exchange item use, and timingof use. The determining may still further include updating theapplicable set of rules based on one or more of a rule changing, a ruleexpiring, and a new rule being added to the set. For example, updatingthe rules and utilizing the updated rules for a compliancedetermination.

When the corresponding condition of the exchange item is compliant withthe one or more rules, the method continues at step 1004 where theprocessing module establishes a secure communication with a computingdevice affiliated with the current owner to take control of the exchangeitem. For example, the processing module accesses a contract blockchaincurrently possessed by the computing device.

While having control over the exchange item, the method continues atstep 1006 where the processing module securely modifies the quantifiablevalue of the exchange item based on the one or more rules to produce amodified exchange item. The modifying may include modifying thequantifiable value by increasing the quantifiable value for the specificuse when the specific use is utilized as the one or more rules of theapplicable rule set and securely modifying the quantifiable value of theexchange item in accordance with a blockchain protocol (e.g., of thecontract blockchain).

The modifying may further include sending a notification message to thecomputing device regarding the increased quantifiable value and thespecific use and storing, by the computing device, the exchange item inaccordance with the blockchain protocol. The modifying of thequantifiable value may further include increasing the quantifiable valuefor use during the specific time frame (e.g., an increased discount forthe next two hours) when the specific time frame is utilized as the oneor more rules of the applicable rule set and sending a notificationmessage to the computing device regarding the increased quantifiablevalue and the specific time frame. While having control over theexchange item, the processing module prevents the computing device oranother computing device from accessing the exchange item (e.g., markingthe modified exchange item as not accessible).

The method continues at step 1008 where the processing module releases,via the secure communication, control of the modified exchange item tothe computing device affiliated with the current owner. For example, theprocessing module marks the modified exchange item as accessibleenabling use of the modified exchange item by the computing device(e.g., to make a purchase transaction). When the specific time frameexpires (e.g., two hours has elapsed), and the modified exchange itemwas used but did not exhaust the quantifiable value, the method branchesto step 1012. When the specific time frame expires and the modifiedexchange item is unused, the method continues to step 1010.

When the specific time frame expires and the modified exchange item isunused, the method continues at step 1010 where the processing modulefacilitates producing a reverted EI. The facilitating includesestablishing another secure communication with the computing deviceaffiliated to take control of the modified exchange item. While havingcontrol over the modified exchange item, the processing module decreasesthe increased quantifiable value to the quantifiable value to produce areverted exchange item, prevents the computing device or anothercomputing device from accessing the exchange item, releases, via theother secure communication, control of the reverted exchange item to thecomputing device affiliated with the current owner, and sends anothernotification message to the computing device regarding the revertedexchange item. The method branches to step 1014.

When the specific time frame expires, and the modified exchange item wasused but did not exhaust the quantifiable value, the method continues atstep 1012 where the processing module facilitates producing a furthermodified EI. The facilitating of producing the further modified EIincludes identifying another rule of the applicable set of rules tofurther modify the modified exchange item and establishing anothersecure communication with the computing device affiliated to takecontrol of the modified exchange item. While having control over themodified exchange item, the processing module increases a remainingquantifiable value to produce a further modified exchange item, preventsthe computing device or another computing device from accessing to themodified exchange item, releases, via the other secure communication,control of the further modified exchange item to the computing deviceaffiliated with the current owner, and sends another notificationmessage to the computing device regarding the further modified exchangeitem.

The method continues at 1014 where the computing device sends a userequest to another server regarding the modified exchange item (e.g., toutilize the modified exchange item for a purchase transaction). Themethod continues at step 1016 where the other server sends a usenotification to the other server (e.g., including information withregards to the purchase transaction). The method continues at step 1018where the processing module of the server establishes a second securecommunication with the computing device affiliated with the currentowner to take control of the modified exchange item.

While having control over the exchange item, the method continues atstep 1020 where the processing module of the server securely adjusts thequantifiable value of the exchange item based on the use notification toproduce an adjusted exchange item (e.g., decrements a remaining balanceby an amount of the purchase transaction). The adjusting may furtherinclude preventing the computing device, the other server, or othercomputing devices from accessing the exchange item during the adjusting.The method continues at step 1022 where the processing module of theserver, and via the second secure communication, releases control of theadjusted exchange item to the computing device affiliated with thecurrent owner.

The method described above in conjunction with the processing canalternatively be performed by other modules of the exchange itemmarketplace network or by other devices. In addition, at least onememory section (e.g., a computer readable memory, a non-transitorycomputer readable storage medium organized into a first memory section,a second memory section, a third memory section, a fourth memorysection, etc.) that stores operational instructions can, when executedby one or more processing modules of one or more computing devices(e.g., one or more servers) of the exchange item marketplace network,cause the one or more computing devices to perform any or all of themethod steps described above.

FIG. 8L is a schematic block diagram of another embodiment of anexchange item marketplace network (e.g., a data communication system)that includes the initial owner computing device 928 FIG. 6, theexchange item (EI) issuing server 920 of FIG. 6, the EI trusted module922 of FIG. 6, the merchant server 924 of FIG. 6, marketplace server 18FIG. 6, the marketplace database 20 of FIG. 6, and the EI buyercomputing device 926 FIG. 6. Entities of the exchange item marketplacenetwork may be operably coupled to each other via the network 24 of FIG.6 or may be directly coupled. The initial owner computing device 928includes the digital wallet 946 of FIG. 6 and the EI buyer computingdevice 926 includes the digital wallet 944 of FIG. 6. The marketplaceserver 18 includes the set up processing 936, the sale processing 938,the use processing 940, and the rule processing 942 all of FIG. 6. Theexchange item marketplace network functions to transfer secure custodyof an exchange item between entities in accordance with a secure custodyprotocol. The secure custody protocol includes utilizing one or more ofa contract blockchain and a transaction blockchain as previouslydiscussed.

In an example of operation of the transferring the secure custody of theexchange item between entities, the marketplace server 18 (e.g., theserver) establishes an initial validity of the exchange item thatincludes data regarding a quantifiable value, a serial number, andissuance information, where the initial validity authenticates theexchange item and the data. The issuance information includes one ormore of issuer identity, and issuance date, and expiration time frame,EI rules, and use parameters. The establishing may include receiving aplurality of exchange items from the EI issuing server 920, where theplurality of exchange items includes the exchange item, and establishingthe initial validity of the exchange item with the EI issuing server920. For example, the set up processing 936 receives EI information 950and an EI rule set 952 from the EI issuing server 920, where the EIissuing server 920 issues trust information 954 (e.g., a first contractblock of the contract blockchain) to the EI trusted module 922 whilegenerating the EI information 950 and the EI rule set 952. Havingreceived the EI information 950 and the EI rule set 952, the set upprocessing 936 exchanges set up verification 956 with the EI trustedmodule 922 to validate the EI information 950 and the EI rule set 952.

Having established the initial validity of the exchange item, themarketplace server 18 executes a secure custody protocol to establishthat the initial owner computing device 928 (e.g., a first computingdevice) of the exchange item marketplace network (e.g., datacommunication system) has secure custody of the exchange item and tomaintain validity of the exchange item. The secure custody protocol mayfurther include one or more of a chain of custody mechanism (e.g., theblockchains), exchange item modification restrictions for computingdevices of the data communication system (e.g., the initial ownercomputing device 928, the EI buyer computing device 926, the merchantserver 924), and exchange item modification rights for servers of thedata communication system. For example, the sale processing 938exchanges set up information 958 with the initial owner computing device928 (e.g., a request to purchase the exchange item, confirmation ofsale, the EI info 950, one or more of the transaction blockchain and thecontract blockchain).

Having executed the secure custody protocol, in response to an exchangeitem transfer and in accordance with the secure custody protocol, themarketplace server 18 facilitates transfer of the secure custody of theexchange item from the first computing device (e.g., the initial ownercomputing device 928) to the server or to a second computing device(e.g., the EI buyer computing device 926) of the data communicationsystem. Such transfer supports one or more of a sale of the exchangeitem, use of the exchange item for a purchase transaction with amerchant associated with the merchant server 924, and modification ofthe exchange item in accordance with the EI rule set 952.

The transferring the secure custody of the exchange item from theinitial owner computing device 928 to the EI buyer computing device 926includes creating, by the sale processing 938, an offer for sale digitalfile for the exchange item in response to an offer for sale request fromthe initial owner computing device 928 and writing the offer for saledigital file for the exchange item to the marketplace database 20 (e.g.,a virtual marketplace database) that includes a user interface forcomputing devices of the data communication system to view offer forsale digital files for a plurality of exchange items. The transferringfurther includes the sale processing 938 receiving purchase information970 that includes a request to purchase the exchange item from the EIbuyer computing device 926 and upon successful execution of thepurchase, transferring the secure custody of the exchange item to the EIbuyer computing device 926. For example, the sale processing 938exchanges sale verification 968 with the EI trusted module 922 to updatethe transaction blockchain to indicate that the EI buyer computingdevice 926 is purchasing the exchange item from the initial ownercomputing device 928.

The transferring the secure custody of the exchange item from the firstcomputing device to the second computing device may further include thesale processing 938 transferring, in response to another exchange itemtransfer and in accordance with the secure custody protocol, the securecustody of the exchange item from the second computing device to themarketplace server 18 or to a third computing device of the datacommunication system. The transferring the secure custody of theexchange item from the first computing device to the second computingdevice may still further include the initial owner computing device 928sending a request to use the exchange item to the use processing 940 ofthe marketplace server 18, where the request to use the exchange itemidentifies the second computing device. When the use is authorized(e.g., the use processing 940 verifies that such use is authorized inaccordance with the EI rule set 952), the use processing 940 transfersthe secure custody of the exchange item to the second computing devicefor the second computing device to execute the use, where the secondcomputing device changes the quantifiable value of the exchange item toproduce a use modified exchange item (e.g., modified EI info 1030), andthe use processing 940 transfers secure custody of the use modified EIinfo 1030 from the second computing device to the first computingdevice.

When transferring the secure custody of the exchange item from theinitial owner computing device 928 (e.g., the first computing device) tothe EI buyer computing device 926 (e.g., the second computing device),the rule processing 942 of the marketplace server 18 determines whethera change to the data of the exchange item occurred while the exchangeitem is in the secure custody of the second computer. For example, therule processing 942 indicates the change to the data when the useprocessing 940 receives merchant use information 980 from the merchantserver 924 in response to the EI buyer computer device 926 issuing buyeruse information 976 to the use processing 940 to facilitate the purchasetransaction with the merchant server 924.

When the change to the data of the exchange item occurred while theexchange item is in the secure custody of the second computer, the useprocessing 940 of the marketplace server 18 determines whether theexchange item is exhausted (e.g., a remaining balance of zero). When theexchange item is exhausted, the use processing 940 retires the exchangeitem (e.g., removes the exchange item from the marketplace database 20and/or issues retirement information to a current owner of exchangeitem.

When the exchange item is in the secure custody of the server, the ruleprocessing 942 of the marketplace server 18 may modify the data of theexchange item to produce a modified exchange item. The modifying of thedata of the exchange item includes identifying a set of rules regardingthe exchange item, where the set of rules includes one or more rules,where a rule of the set of rules includes an amount of data change andone or more conditions on when to apply the amount of change. Themodifying further includes the rule processing 942 determining that acondition involving the first computing device conforms to the one ormore conditions and when the condition involving the first computingdevice conforms to the one or more conditions, the rule processing 942modifies the data of the exchange item in accordance with the amount ofchange (e.g., updates the marketplace database 20). Having modified thedata of the exchange item, the rule processing 942 transfers securecustody of the modified exchange item to the initial owner computingdevice 928 device in accordance with the secure custody protocol.

FIG. 8M is a logic diagram of an embodiment of another method formodifying an exchange item in an exchange item marketplace network. Inparticular, a method is presented for use in conjunction with one ormore functions and features described in conjunction with FIGS. 1-7E,8A-L, and also FIG. 8M. The method includes step 1100 where a processingmodule of a server (e.g., a marketplace server of a communicationsystem) establishes an initial validity of an exchange item thatincludes data regarding a quantifiable value, a serial number, andissuance information, where the initial validity authenticates theexchange item and the data. The establishing may include receiving aplurality of exchange items from an issuing server, where the pluralityof exchange items includes the exchange item, and establishing theinitial validity of an exchange item with the issuing server.

The method continues at step 1102 where the processing module executes asecure custody protocol to establish that a first computing device ofthe data communication system has secure custody of the exchange itemand to maintain validity of the exchange item. For example, theprocessing module generates a secure transaction block of a transactionblockchain, where the secure transaction block indicates that the firstcomputing device has secure custody.

The method continues to step 1104 where the processing module transfers,in response to an exchange item transfer and in accordance with thesecure custody protocol, the secure custody of the exchange item fromthe first computing device to the server or to a second computing deviceof the data communication system (e.g., for a sale, a purchase, or amodification). The method branches to step 1112 when transferring to theserver. When transferring to the second computing device, thetransferring the secure custody of the exchange item from the firstcomputing device to the second computing device includes creating anoffer for sale digital file for the exchange item in response to anoffer for sale request from the first computing device the offer forsale digital file for the exchange item to a virtual marketplacedatabase that includes a user interface for computing devices of thedata communication system to view offer for sale digital files for aplurality of exchange items, receiving a request to purchase theexchange item from the second computing device, and upon successfulexecution of the purchase, transferring the secure custody of theexchange item to the second computing device.

The transferring the secure custody of the exchange item from the firstcomputing device to the second computing device may further includetransferring, in response to another exchange item transfer and inaccordance with the secure custody protocol, the secure custody of theexchange item from the second computing device to the server or to athird computing device of the data communication system. Thetransferring the secure custody of the exchange item from the firstcomputing device to the second computing device may still furtherinclude sending, by the first computing device, a request to use theexchange item to the server, where the request to use the exchange itemidentifies the second computing device. When the use is authorized,processing module transfers the secure custody of the exchange item tothe second computing device for the second computing device to executethe use, where the second computing device changes the quantifiablevalue of the exchange item to produce a use modified exchange item, andtransfers secure custody of the use modified exchange item from thesecond computing device to the first computing device.

When transferring the secure custody of the exchange item from the firstcomputing device to the second computing device, the method continues atstep 1106 where the processing module determines whether a change to thedata of the exchange item occurred while the exchange item is in thesecure custody of the second computing device (e.g., a lowering of aremaining balance based on usage of the exchange item). When the changeto the data of the exchange item occurred while the exchange item is inthe secure custody of the second computing device, the method continuesat step 1108 where the processing module determines whether the exchangeitem is exhausted (e.g., remaining balance has reached zero). When theexchange item is exhausted, the method continues at step 1110 where theprocessing module retires the exchange item.

When the exchange item is in the secure custody of the server, themethod continues at step 1112 or the processing module modifies the dataof the exchange item to produce a modified exchange item. The modifyingthe data of the exchange item includes identifying a set of rulesregarding the exchange item, where the set of rules includes one or morerules, where a rule of the set of rules includes an amount of datachange and one or more conditions on when to apply the amount of change,determining that a condition involving the first computing deviceconforms to the one or more conditions, and when the condition involvingthe first computing device conforms to the one or more conditions,modifying the data of the exchange item in accordance with the amount ofchange. The method continues at step 1114 where the processing moduletransfers secure custody of the modified exchange item to the firstcomputing device in accordance with the secure custody protocol.

The method described above in conjunction with the processing canalternatively be performed by other modules of the exchange itemmarketplace network or by other devices. In addition, at least onememory section (e.g., a computer readable memory, a non-transitorycomputer readable storage medium organized into a first memory section,a second memory section, a third memory section, a fourth memorysection, a fifth memory section etc.) that stores operationalinstructions can, when executed by one or more processing modules of oneor more computing devices (e.g., one or more servers) of the exchangeitem marketplace network, cause the one or more computing devices toperform any or all of the method steps described above.

FIG. 8N is a schematic block diagram of another embodiment of anexchange item marketplace network (e.g., a data communication system, anetwork-based virtual exchange item marketplace) that includes thenetwork 24 of FIG. 6, the merchant server 924 of FIG. 6, an enterprisestorage 1122, an enterprise server 1124, a trusted issuing server 1134,and a plurality of computing devices 1-C. The trusted issuing server1134 may be implemented utilizing one or more of a secure server, theexchange item (EI) issuing server 920 of FIG. 6, and the EI trustedmodule 922 of FIG. 6. The enterprise storage 1122 may be implementedutilizing a plurality of storage servers at a local or distributed levelfor storing large amounts of data. For example, the enterprise storage1122 may be implemented utilizing the marketplace database 20 of FIG. 6.The enterprise server 1124 may be implemented utilizing one or moreservers for processing large amounts of data. For example, theenterprise server 1124 may be implemented utilizing the marketplaceserver 18 of FIG. 6. The plurality of computing devices may include oneor more of the initial owner computing device 928 of FIG. 6, the EIbuyer computing device 926 of FIG. 6, and any other computer that ispart of the data communication system.

The enterprise storage 1122 includes one or more of the agreementdatabase 930 of FIG. 6, the user database 932 of FIG. 6, the exchangeitem database 934 of FIG. 6, and a rules database 1120. The enterpriseserver 1124 includes a network interface, a memory, and a processingmodule operably coupled to the network interface into the memory. Thenetwork interface may be implemented utilizing the network interfacemodule(s) 78 of FIG. 3. The memory may be implemented utilizing one ormore of the main memory 66 of FIG. 3, the memory interface module(s) 80of FIG. 3, the flash memory 92 of FIG. 3, the HD memory 94 of FIG. 3,the SS memory 96 of FIG. 3, and the cloud memory 98 of FIG. 3. Theprocessing module may be implemented utilizing the processing module 62of FIG. 3 and may be utilized to implement one or more of a set upmodule 1126, a sale module 1128, a use module 1130, and a ruleapplication module 1132.

The set up module 1126 functions to initially validate exchange itemsand create records in the exchange item database 934 for validatedexchange items, where each of the exchange items includes data regardinga quantifiable value, a serial number, and issuance information. Thesale module 1128 functions to securely transfer a selected exchange itemfrom the first computing device to the second computing device. The usemodule 1130 functions to securely apply the selected exchange item to aclosed loop digital transaction in accordance with an agreement of theagreements database 930. The rule application module 1132 functions tosecurely modify the data of the selected exchange item in accordancewith an applicable set of rules from the rules database 1120. Examplesof operation of the enterprise server 1124 are discussed in greaterdetail below.

The enterprise storage 1122 further functions to store the user database932, where the user database 932 includes one or more of a useridentifier field (e.g., identified person and associated computingdevices), an exchange item buying information field; (e.g., which EIsthe user buys), and exchange item use information field (e.g., how much,how often, and what types of EIs the user uses), and an exchange itemselling information field.

To facilitate offering exchange items for sale, the processing module ofthe enterprise server 1124 accesses a record in the user database 932 ofa user associated with a computing device, accesses one or more of theexchange item database, the agreements database, and the rules databaseto identify one or more exchange items of interest to the user, andsends, via the network interface, a message to the computing deviceregarding the one or more exchange items of interest.

When acquiring an exchange item, the computing device of the pluralityof computing devices stores a user exchange item database (e.g., aportion of the exchange item database 934 that is pertinent to the userand computing device) that includes one or more of an exchange itemidentifier field, an issuer identifier field, an exchange iteminformation field, a use options field, a control field, a locationfield, a status field, and a transaction field. The exchange itemdatabase 934 includes one or more records, where each record includesone or more of an exchange item identifier field, an issuer identifierfield, a current owner identifier field, an exchange item informationfield (e.g., value, type, issuance date, expiration date, useparameters), a conditions field (e.g., tracks conditions of an ownerregarding potential applicability of rules), a rules identifier field(e.g., identifies one or more applicable rule sets), an offer for salefield (e.g., an indication that current owner is offering the EI forsale, doesn't prohibit current owner from using EI), a use options field(e.g., identifies which merchants will accept the EI as a form ofpayment, this is determined based on content of the agreement database930), a control field (e.g., identifies the entity that currently hasthe right to use or modify the EI), a location field (e.g., identifiesthe entity that currently has physical possession of the EI, which maybe different than the entity that has control, for example, the servermay have physical possession and a computing device may have control), astatus field (e.g., identify the status of the EI such as active,inactive, valid, questionable validity, exhausted, expired, etc.), and atransaction field (e.g., a record of the transaction history of the EI,built into blockchain). Each field may include sub-fields to accommodatevarious pieces of information being recorded.

The agreements database includes one or more of an issuer identifierfield, an exchange item type field (e.g., identifies the types of EIthat are part of the agreement), a recipient entity identifier field(e.g., identifies the entities that will accept the EI as a form ofpayment), an agreement identifier field (e.g., agreement between issuerand recipient entity on use of EI), and a rules identifier field (e.g.,if rules exist for EI, do they apply for use with the recipient, mayvary from recipient to recipient). The rules database includes one ormore of an issuer identifier field, an exchange item type field (e.g.,per issuer), a rule set field (e.g., includes rules for a set of rules:discount, conditions to be met, etc.), and a rules applicability field(e.g., for an EI type, does the rule set apply or not).

When adding a new exchange item to the data communication system, theset up module 1126 establishes establish, via the network interface andthe network 24, a secure communication link with the trusted issuingserver 1134, where the issuing server 1134 performs one or more ofcreating the EI to put directly into the exchange item database,providing on-the-fly creation at request of a user or merchant,providing the EI as a location based promotion, and providing the EI asa user based promotion, etc. Having established the link, the set upmodule 1126 receives, via the network interface and the network 24, thedata of the exchange item from the trusted issuing server 1134 inaccordance with a secure custody protocol (e.g., utilizing a contractblockchain). Having received the data, the set up module 1126establishes the enterprise server 1124 as having secure custody of theexchange item (e.g., as a current owner as noted within the contractblockchain). Having established the secure custody, the set up module1126 creates a record in the exchange item database 934 for the exchangeitem.

When the exchange item is to be sold to a computing device, the salemodule 1128 receives, via the network interface and the network 24, arequest to sell a particular exchange item for a first computing device(e.g., computing device 1). Having received the request, the sale module1128 verifies that the first computing device has secure custody of theparticular exchange item in accordance with the secure custody protocol(e.g., verifies a signature of the computing device 1). When the firstcomputing device has secure custody of the particular exchange item, thesale module 1128 verifies the data of the exchange item (e.g., verifieswith the trusted issuing server 1134, verifies with the exchange itemdatabase 934, verifies a signature over the data). When the data of theexchange item is verified, the sale module 1128 adds an offer for saledigital record for the particular exchange item in the network-basedvirtual exchange item marketplace (e.g., indicates for sale in theexchange item database 934).

When the exchange item is to be sold from the first computing device tothe second computing device, the sale module 1128 receives, via thenetwork interface and the network 24, a request to purchase a particularexchange item from the second computing device (e.g., computing device2) and authenticates the second computing device. When the secondcomputing device is authenticated, the sale module 1128 transfers securecustody of the particular exchange item from the first computing deviceto the second computing device in accordance with the secure custodyprotocol (e.g., facilitates modification of the contract blockchain toindicate that the computing device 2 is the new owner), and removes theoffer for sale digital record for the particular exchange item from thenetwork-based virtual exchange item marketplace (e.g., updates theexchange item database 934).

When a computing device (e.g., computing device 2) utilizes an exchangeitem in a purchase transaction (e.g., a closed loop digitaltransaction), the use module 1130 receives, via the network interfaceand the network 24 from a computing device, a request to use theexchange item in a particular closed loop digital transaction with arecipient entity server (e.g., the merchant server 924). Having receivedthe request, the use module 1130 accesses the agreements database 930 todetermine whether an agreement exists between an issuing server (e.g.,the trusted issuing server 1134) of the particular exchange item and therecipient entity server. When the agreement exists, the use module 1130determines whether the particular closed loop digital transaction is inaccordance with the agreement (e.g., user is allowed, the particulartype of transaction is allowed, rules and conditions apply, etc.). Whenthe particular closed loop digital transaction is in accordance with theagreement, the use module 1130 authorizes the particular closed looptransaction. When the agreement does not exist or the particular closedloop digital transaction is not in accordance with the agreement, usemodule 1130 denies the particular closed loop transaction.

From time to time, the rule application module 1132 considers modifyingthe data of the exchange item (e.g., based on one or more ofinterpreting a schedule, receiving a request, detecting a change in acondition). When considering the modifying of the data, the ruleapplication module 1132 obtains condition information of a computingdevice having secure custody of a particular exchange item (e.g.,condition from user profile and history provides the conditioninformation, physical location, environmental conditions, etc.). Theobtaining includes one or more of identifying a condition source,interpreting condition data from the identified condition source,receiving the condition information, performing a lookup, and generatingthe condition information based on condition data.

Having obtained the condition information, the rule application module1132 accesses rules of the applicable set of rules associated with theparticular exchange item from the rules database 1120. Having accessedthe rules, the rule application module 1132 compares the conditioninformation with the rules of the applicable set of rules. When thecondition information compares favorably with the rules of theapplicable set of rules, the rule application module 1132 obtains securecustody of the particular exchange item from the computing device inaccordance with the secure custody protocol (e.g., physically takecustody by a data transfer or update the exchange item database 934 toindicate that the enterprise server 1124 has secure custody). Whilehaving secure custody, the rule application module 1132 modifies thedata of the particular exchange item in accordance with the rules of theapplication set of rules to produce a modified exchange item andtransfers secure custody of the modified exchange item to the computingdevice.

FIG. 8P is a logic diagram of an embodiment of another method forsecurely processing an exchange item in an exchange item marketplacenetwork. In particular, a method is presented for use in conjunctionwith one or more functions and features described in conjunction withFIGS. 1-7E, 8A-N, and also FIG. 8P. The method includes step 1140 wherea processing module (e.g., of an enterprise server of a datacommunication system) stores an exchange item database, an agreementsdatabase, and a rules database in an enterprise storage. The storing mayfurther include storing a user database in the enterprise storage andaccessing a record in the user database of a user associated with acomputing device of a plurality of computing devices. The storing mayyet further include accessing a record in the user database of a userassociated with a computing device, accessing one or more of theexchange item database, the agreements database, and the rules databaseto identify one or more exchange items of interest to the user, andsending a message to the computing device regarding the one or moreexchange items of interest. The storing may still further includestoring, by the computing device of the plurality of computing devices,a user exchange item database (e.g., a portion of the user database).

The method continues at step 1142 where the processing module initiallyvalidates exchange items and creates records in the exchange itemdatabase for validated exchange items, where each of the exchange itemsincludes data regarding a quantifiable value, a serial number, andissuance information. The initially validating the exchange items andcreating records in the exchange further includes establishing a securecommunication link with a trusted issuing server, receiving the data ofan exchange item from the issuing server in accordance with a securecustody protocol, establishing the enterprise server as having securecustody of the exchange item, and creating a record in the exchange itemdatabase for the exchange item.

The method continues to step 1144 where the processing module securelytransfers a selected exchange item from a first computing device to asecond computing device in accordance with an offer for sale of theselected exchange item. The secure transferring of the selected exchangeitem from the first computing device to the second computing device inaccordance with the offer for sale of the selected exchange item furtherincludes a variety of approaches. In a first approach, the processingmodule receives a request to sell the selected exchange item from thefirst computing device, and verifies that the first computing device hassecure custody of the particular exchange item in accordance with asecure custody protocol. When the first computing device has securecustody of the particular exchange item, the processing module verifiesthe data of the exchange item. When the data of the exchange item isverified, the processing module adds an offer for sale digital recordfor the particular exchange item in a network-based virtual exchangeitem marketplace (e.g., an exchange item database).

In a second approach to the securely transferring the selected exchangeitem from the first computing device to the second computing device inaccordance with the offer for sale of the selected exchange item, theprocessing module receives a request to purchase a particular exchangeitem from the second computing device, and authenticates the secondcomputing device. When the second computing device is authenticated, theprocessing module transfers secure custody of the particular exchangeitem from a first computing device to the second computing device inaccordance with a secure custody protocol and removes an offer for saledigital record for the particular exchange item from the network-basedvirtual exchange item marketplace (e.g., from the exchange itemdatabase).

The method continues at step 1146 where the processing module securelyapplies the selected exchange item to a closed loop digital transactionbetween two computing entities (e.g., computing device or server) inaccordance with an agreement of the agreements database. The securelyapplying the selected exchange item to the closed loop digitaltransaction further includes receiving, from a computing device, arequest to use an exchange item in a particular closed loop digitaltransaction with a recipient entity server, and accessing the agreementsdatabase to determine whether an agreement exists between an issuingserver of the particular exchange item and the recipient entity server.When the agreement exists, the processing module determines whether theparticular closed loop digital transaction is in accordance with theagreement. When the particular closed loop digital transaction is inaccordance with the agreement, the processing module authorizes theparticular closed loop transaction. When the agreement does not exist orthe particular closed loop digital transaction is not in accordance withthe agreement, the processing module denies the particular closed looptransaction.

The method continues at step 1148 where the processing module securelymodifies the data of the selected exchange item in accordance with anapplicable set of rules from the rules database. The securely modifyingof the data of the selected exchange item further includes obtainingcondition information of a computing device having secure custody of aparticular exchange item, accessing rules of the applicable set of rulesassociated with the particular exchange item from the rules database,and comparing the condition information with the rules of the applicableset of rules. When the condition information compares favorably with therules of the applicable set of rules, the processing module obtainssecure custody of the particular exchange item from the computing devicein accordance with secure custody protocol. While having secure custody,the processing module modifies the data of the particular exchange itemin accordance with the rules of the application set of rules to producea modified exchange item and transfers secure custody of the modifiedexchange item to the computing device.

The method described above in conjunction with the processing canalternatively be performed by other modules of the exchange itemmarketplace network or by other devices. In addition, at least onememory section (e.g., a computer readable memory, a non-transitorycomputer readable storage medium organized into a first memory section,a second memory section, a third memory section, a fourth memorysection, a fifth memory section etc.) that stores operationalinstructions can, when executed by one or more processing modules of oneor more computing devices (e.g., one or more servers) of the exchangeitem marketplace network, cause the one or more computing devices toperform any or all of the method steps described above.

FIGS. 9A-B are schematic block diagrams of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the point-of-sale (POS)equipment 32 of FIG. 1, at least one merchant server 924 of FIG. 6, themarketplace server 18 of FIG. 6, and the marketplace database 20 of FIG.6. The EI buyer computing device 926 includes a digital wallet 944 ofFIG. 6. Hereafter, the EI buyer computing device 926 may beinterchangeably referred to as a computing device. The marketplaceserver 18 includes the set up processing 936 of FIG. 6 and the useprocessing 940 of FIG. 6. Hereafter the exchange item marketplacenetwork may be interchangeable referred to as a data communicationsystem. The data communication system functions to verify a merchantassociated with at least one of the at least one merchant servers 924 ofthe exchange item marketplace network.

FIG. 9A illustrates an example of the verifying of the merchant wherethe EI issuing server 920 creates a plurality of exchange items thatincludes an exchange item for use by the EI buyer computing device 926when acquiring an item from the merchant associated with a merchantserver 924. For example, the EI issuing server 920 creates the pluralityof exchange items and issues EI information (info) 950 to themarketplace server 18, where the EI issuing server 920 exchanges trustinformation 954 with the EI trusted module 922, where the EI trustedmodule 922 exchanges set up verification 956 with the set up processing936 to verify creation of the plurality of exchange items.

Having created the plurality of exchange items, the issuing server 920generates use rules to include a list of authenticating information forthe plurality of merchant servers of the data communication system. Forexample, the EI issuing server 920 generates an EI rule set 952 toinclude the use rules associated with the plurality of merchant servers.Having generated the use rules, the issuing server 920 provides the userules to the marketplace server 18 and provides the authenticatinginformation of the merchant server to the merchant server 924. Forexample, the EI issuing server issues the EI rule set 952 to the set upprocessing 936 and the set up processing 936 issues authenticatinginformation 1150 to the plurality of merchant servers 924, where theauthenticating information includes the use rules.

The authenticating information includes one or more of a variety ofauthenticating approaches. A first authenticating approach includes apublic key of an individual public-private key pair of the merchantserver 924, where a verification signature is created using the privatekey of the individual public-private key pair and a comparativeverification signature is created using the public key of the individualpublic-private key pair. A second authenticating approach includes apublic key of a shared public-private key pair, where the sharedpublic-private key pair is shared by a group of merchant servers thatincludes the merchant server 924, where the verification signature iscreated using the private key of the shared public-private key pair andthe comparative verification signature is created using the public keyof the shared public-private key pair. A third authenticating approachincludes a security identifier (e.g., a password, a serial number, arandom number, combo thereof, etc.) assigned to the merchant server 924,where the merchant server 924 has a local copy of the securityidentifier and the marketplace server 18 has a centralized copy of thesecurity identifier, where the verification signature is created usingthe local copy of the security identifier, and where the comparativeverification signature is created using the global copy of the securityidentifier.

With the plurality of exchange items generated and offered for sale bythe market place server 18, the EI buyer computing device 926 acquiresthe exchange item. For example, the EI buyer computing device 926exchanges secure purchase information 1152 with the set up processing936, where the secure purchase information includes one or more of theEI info 950, the EI rule set 952, the public keys of the individualpublic-private key pairs of the merchant servers, the public key of theshared public-private key pair of the merchant servers, and a blockchainledger documenting purchase of the exchange item by the EI buyercomputing device 926, where the blockchain ledger is signed by themarketplace server 18 in accordance with a secure custody protocol.

FIG. 9B further illustrates the example of the verifying of the merchantwhere the EI buyer computing device 926 (e.g., the computing device ofthe data communication system) initiates an acquisition process with amerchant server 924 of the data communication system to acquire an itemusing an exchange item, where the exchange item has an exchange itemdata file that includes a quantifiable value (e.g., a remainingbalance), a serial number (e.g., a unique EI identifier), and issuanceinformation and where the computing device has secure custody of theexchange item data file in accordance with a secure custody protocol(e.g., the set up processing 936 signs the blockchain ledger, where theblockchain ledger includes a public key of the EI buyer computing device926).

The initializing of the acquisition process includes the EI buyercomputing device 926 sending, via the point-of-sale equipment 32, arequest (e.g., buyer use information 1154) to acquire the item andidentity of the exchange item to the merchant server 924, and sending,by the merchant server 924, notice of the request and identity of theexchange item (e.g., merchant use information 1156) to the useprocessing 940 of the marketplace server 18. The buyer use information1154 includes one or more of an identifier of the item for purchase andthe blockchain ledger of the secure custody protocol. The merchant useinformation 1156 includes one or more of the buyer use information 1154and an identifier of the merchant server 924.

Having sent the notice of the request and identity of the exchange item,at least one of the merchant server 924 and the marketplace server 18determines whether the acquisition process requires verification of themerchant server 924. The determining includes a variety of approaches.In a first determining approach, the merchant server 924 interprets therequest to determine that the acquisition process requires verification,where the request includes a verification indicator, and the merchantserver 924 identifies that the exchange item is of a type that requiresverification of the merchant server 924. In a second determiningapproach, the use processing 940 of the marketplace server interpretsthe notice to determine that the acquisition process requiresverification.

When the acquisition process requires verification of the merchantserver, the use processing 940 obtains a verification signature of themerchant server. For example, the EI buyer computing device 926 sendsthe request to acquire the item and the identity of the exchange item tothe merchant server 924 to initiate acquisition process, the merchantserver 924 determines that the acquisition process requiresverification, and the merchant server 924 sends the verificationsignature and a notice of the request and of the identity of theexchange item to the marketplace server. For instance, the merchantserver 924 utilizes an individual private key to sign at least a portionof the merchant use information 1156 and sends the merchant useinformation 1156 to the use processing 940.

Having received the merchant use information 1156, the use processing940 of the marketplace server 18 authenticates the verificationsignature of the merchant server in accordance with use rules (e.g.,authorized merchant server keys, use restrictions, acquirable itemslist, etc.) associated with the exchange item. The authenticating of theverification signature includes the marketplace server 18 obtaining theuse rules associated with the exchange item (e.g., from the marketplacedatabase 20, from the received blockchain ledger), where the use rulesincludes the list of authenticating information for the plurality ofmerchant servers of the data communication system; determining whetherthe merchant server is one of the plurality of merchant servers; whenthe merchant server is one of the plurality of merchant servers,accessing the authenticating information of the merchant server;generating a comparative verification signature based on theauthenticating information of the merchant server; comparing thecomparative verification signature with the verification signature(e.g., authenticating the verification signature of the merchantserver); and when the comparative verification signature substantiallymatches the verification signature, authenticating the verificationsignature (e.g., indicating that the merchant server is valid).

When the verification signature of the merchant server is authenticated,the use processing 940 of the marketplace server 18 facilitates exchangeof the secure custody of the exchange item data file between the EIbuyer computing device 926 and the merchant server 18 in accordance withthe secure custody protocol to finalize the acquisition process. Thefacilitating of the exchange of the secure custody of the exchange itemdata file includes the marketplace server 18 enabling exchange of thesecure custody of the exchange item data file from the EI buyercomputing device 926 to the merchant server 924 in accordance with thesecure custody protocol (e.g., where the EI buyer computing device 926has signed a portion of the blockchain ledger that is passed to themerchant server 924), and while having the secure custody, the merchantserver 924 updating the exchange item data file to reflect theacquisition of the item by the EI buyer computing device 926 via theexchange item, and when the acquisition process has been executed, themerchant server 924 returning the secure custody of the updated exchangeitem data file to the computing device (e.g., signing an updated portionof the blockchain ledger for passage back to the EI buyer computingdevice 926).

FIG. 9C is a logic diagram of an embodiment of a method for verifying amerchant in a data communication system providing an exchange itemmarketplace network. In particular, a method is presented for use inconjunction with one or more functions and features described inconjunction with FIGS. 1-8P, 9A-B, and also FIG. 9C. The method includesstep 1170 where an issuing server provides use rules to a marketplaceserver, where the issuing server creates a plurality of exchange itemsthat includes an exchange item acquired by a computing device andsubsequently utilized by the computing device to acquire an item usingthe exchange item, where the issuing server generates the use rules toinclude a list of authenticating information for a plurality of merchantservers of the data communication system, and where the computing deviceacquires the item via a merchant server of the plurality of merchantservers. The method continues at step 1172 where the issuing serverprovides the authenticating information of the merchant server to themerchant server.

The method continues at step 1174 where the computing device initiatesan acquisition process with the merchant server of the datacommunication system to acquire the item using the exchange item, wherethe exchange item has an exchange item data file that includes aquantifiable value, a serial number, and issuance information andwherein the computing device has secure custody of the exchange itemdata file in accordance with a secure custody protocol. The initiatingof acquisition process includes the computing device sending a requestto acquire the item and identity of the exchange item to the merchantserver and chin server sending notice of the request and the identity ofthe exchange item to the marketplace server.

The method continues at step 1176 where at least one of the merchantserver and the marketplace server determines whether the acquisitionprocess requires verification of the merchant server. The determiningwhether the acquisition process requires verification includes one ofthe merchant server interpreting the request to determine that theacquisition process requires verification, where the request includes averification indicator; and the merchant server identifying that theexchange item is of a type that requires verification of the merchantserver. The determining whether the acquisition process requiresverification may further include the marketplace server interpreting thenotice to determine that the acquisition process requires verification.

When the acquisition process requires verification of the merchantserver, the method continues at step 1178 where the marketplace serverobtains a verification signature of the merchant server. As an exampleof the obtaining of the verification signature of the merchant server,the computing device sends a request to acquire the item and identity ofthe exchange item to the merchant server to initiate the acquisitionprocess; the merchant server determines that the acquisition processrequires verification, and the merchant server sends the verificationsignature and a notice of the request and of the identity of theexchange item to the marketplace server.

The method continues at step 1180 where the marketplace serverauthenticates the verification signature of the merchant server inaccordance with use rules (e.g., authorized merchant server keys, userestrictions, acquirable items list, etc.) associated with the exchangeitem. The authenticating the verification signature includes themarketplace server obtaining the use rules associated with the exchangeitem, where the use rules includes a list of authenticating informationfor a plurality of merchant servers of the data communication system;the marketplace server determining whether the merchant server is one ofthe plurality of merchant servers; when the merchant server is one ofthe plurality of merchant servers, the marketplace server accessing theauthenticating information of the merchant server; the marketplaceserver generating a comparative verification signature based on theauthenticating information of the merchant server;

marketplace server comparing the comparative verification signature withthe verification signature and when the comparative verificationsignature substantially matches the verification signature, themarketplace server authenticating the verification signature.

When the verification signature of the merchant server is authenticated,the method continues at step 1182 where the marketplace serverfacilitates exchange of the secure custody of the exchange item datafile between the computing device and the merchant server in accordancewith the secure custody protocol to finalize the acquisition process.The facilitating includes the marketplace server enabling exchange ofthe secure custody of the exchange item data file from the computingdevice to the merchant server in accordance with the secure custodyprotocol; while having the secure custody, the merchant server updatingthe exchange item data file to reflect the acquisition of the item bythe computing device via the exchange item; and when the acquisitionprocess has been executed, the merchant server returning the securecustody of the updated exchange item data file to the computing device.

The method described above in conjunction with the issuing server, thecomputing device, and the marketplace server can alternatively beperformed by other modules of the exchange item marketplace network orby other devices. In addition, at least one memory section (e.g., acomputer readable memory, a non-transitory computer readable storagemedium organized into a first memory, a second memory, a third memory, afourth memory, a fifth memory, etc.) that stores operationalinstructions can, when executed by one or more processing modules of oneor more computing devices (e.g., one or more servers) of the exchangeitem marketplace network, cause the one or more computing devices toperform any or all of the method steps described above.

FIG. 10A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the merchant server 924 of FIG.6, the marketplace server 18 of FIG. 6, and the marketplace database 20of FIG. 6. The EI buyer computing device 926 includes the digital wallet944 of FIG. 6. Hereafter, the EI buyer computing device 926 may beinterchangeably referred to as a user computing device. The marketplaceserver 18 includes the use processing 940 of FIG. 6. Hereafter theexchange item marketplace network may be interchangeable referred to asa data communication system. The data communication system functions toredeem an exchange item in the exchange item marketplace network.

In an example of operation of the redeeming of the exchange item, whenthe EI buyer computing device 926 initiates redemption of an exchangeitem (EI) held in the digital wallet 944, the use processing 940receives buyer use information 976, where the buyer use information 976indicates an item for direct purchase from a particular merchantutilizing the EI without aid of a point-of-sale terminal. The receivingincludes the EI buyer computing device 926 obtaining a merchantidentifier (ID) and generating the buyer use information 976 to includeone or more of the merchant ID, an identifier of the item for purchase,EI information, and a blockchain ledger held in the digital wallet 944in accordance with a secure custody protocol. Having generated the buyeruse information 976, the EI buyer computing device 926 sends the buyeruse information directly (e.g., not via a point-of-sale terminal) to themarketplace server 18 (e.g., to the use processing 940).

Having received the buyer use information 976, the use processing 940validates the buyer use information 976 to produce validated buyer useinformation. The validating includes one or more of validating theblockchain ledger (i.e., verifying that a signature is valid within theblockchain ledger), accessing the marketplace database 20 to verify thatthe EI has sufficient remaining balance and that the EI buyer computingdevice is associated with ownership of the EI, and exchanging useverification 978 with the EI trusted module 922 to validate the EI(i.e., sufficient remaining balance for the transaction).

When the buyer use information 976 is valid, the use processing 940facilitates processing of the redemption of the EI. The facilitatingincludes one or more of the use processing 940 generating merchant useinformation 1210 to include one or more of a portion of the buyer useinformation, a valid transaction indicator, payment information, a buyeridentifier, a transaction identifier, and a direct purchase indicator;and sending the merchant use information 1210 to the merchant server924, where the merchant server completes the redemption.

FIG. 10B is a logic diagram of an embodiment of a method for redeemingan exchange item in an exchange item marketplace network. The methodincludes step 1220 where a processing module (e.g., of a marketplaceserver) receives buyer use information from a buyer computing device,where the buyer use information indicates an item for direct purchasefrom a particular merchant by redemption of an exchange item) EI) heldby the buyer computing device. For example, the buyer computing deviceobtains a merchant identifier (ID), generates the buyer use informationto include one or more of the merchant ID, an identifier of the item, EIinformation, and a blockchain ledger held in a digital wallet inaccordance with a secure custody protocol, and transmits the buyer useinformation to the processing module.

The method continues at step 1222 for the processing module validatesthe buyer use information. The validating includes one or more ofvalidating the blockchain ledger (i.e., verifying that a signature isvalid within the blockchain ledger), accessing the marketplace databaseto verify that the EI has sufficient remaining balance and that thebuyer computing devices associated with ownership of the EI, andexchanging use verification with an EI trusted module to furthervalidate EI (i.e., sufficient remaining balance of the EI).

When the buyer use information is valid, the method continues at step1224 where the processing module facilitates processing of redemption ofthe exchange item. The facilitating includes one or more of generatingmerchant use information to include one or more of a portion of thebuyer use information, a valid transaction indicator, paymentinformation, a buyer identifier, a transaction identifier, and a directpurchase indicator; and sending the merchant use information to amerchant server associated with a merchant, where the merchant servercompletes the redemption of the exchange item.

FIG. 11A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the point-of-sale (POS)equipment 32 of FIG. 1, the merchant server 924 of FIG. 6, themarketplace server 18 of FIG. 6, and the marketplace database 20 of FIG.6. The EI buyer computing device 926 includes the digital wallet 944 ofFIG. 6. Hereafter, the EI buyer computing device 926 may beinterchangeably referred to as a user computing device. The marketplaceserver 18 includes the use processing 940 of FIG. 6 and the ruleprocessing 942 of FIG. 6. Hereafter the exchange item marketplacenetwork may be interchangeable referred to as a data communicationsystem. The data communication system functions to promote utilizationof exchange items in the exchange item marketplace network.

In an example of operation of the promoting utilization of the exchangeitems, for a plurality of EI redemption transactions initiated by the EIbuyer computing device 926, the use processing 940 maintains ahistorical record of at least some of the EI redemption transactions.The maintaining includes at least one of storing at least a portion ofreceived merchant use information 980 (e.g., buyer use information,payment information) and the marketplace database 20 and storing ablockchain ledger associated with each of one or more exchange itemsassociated with the EI buyer computing device in the marketplacedatabase 20.

Having maintained the historical records, the rule processing 942indicates enablement of one or more promotions associated with adetected pattern of the redemption transactions. The promotions includeone or more of receiving a further discount when spending down anexchange item balance in accordance with a schedule, receiving anadditional discount for a limited time frame, offering a specialone-time discount when the time frame has expired since the lastredemption, etc. The indicating of the enablement includes retrievingthe historical record, comparing and interpretation of the retreathistorical record with one or more promotion EI rules, and indicatingthe enablement of the one or more promotions when the interpretation ofthe comparison is favorable (i.e., a pattern match).

With the enablement of the one or more promotions indicated, the ruleprocessing 942 issues updated EI information and EI rules 1230 to the EIbuyer computing device 926, where an initial EI information 950 and anEI rule set 952 are updated in accordance with the enameled one or morepromotions, and where the EI buyer computing device 926 may subsequentlyinitiate further EI redemptions in accordance with the one or morepromotions. For example, the EI buyer computing device 926 sends buyeruse information 976, via the POS equipment 32, to the merchant server924 in accordance with the one or more promotions. Alternatively, or inaddition to, the EI buyer computing device 926 to text the pattern ofthe redemption transactions and in accordance with an existing EI rule,activates a dormant EI rule under a secure custody protocol to initiatethe further EI redemptions in accordance with one or more promotions.

FIG. 11B is a logic diagram of an embodiment of a method for promotingutilization of exchange items in an exchange item marketplace network.For a plurality of exchange item redemption transactions initiated by abuyer computing device, the method includes step 1240 where a processingmodule (e.g., of a marketplace server) maintains a historical record ofat least some of the redemption transactions. The maintaining includesat least one of storing at least a portion of received merchant useinformation in a marketplace database and storing a blockchain ledgerassociated with redemption transactions of the buyer computing device inthe marketplace database.

The method continues at step 1242 where the processing module indicatesenablement of one or more promotions associated with a detected patternof redemption transactions in accordance with one or more promotionexchange item (EI) rules. The indicating of the enablement includes oneor more of retrieving the historical record, comparing andinterpretation of the retreat historical record with one or morepromotion EI rules, and indicating the enablement of the one or morepromotions when the comparison is favorable (i.e., a pattern match).

The method continues at step 1244 where the processing module providesupdated exchange item information to the buyer computing device inaccordance with the one or more unable promotions. For example, theprocessing module identifies the enabled one or more promotions (i.e.,in accordance with the one or more promotion EI rules) and sendspromotion information with regards to the one or more unable promotionsto the buyer computing device.

FIG. 12A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the point-of-sale (POS)equipment 32 of FIG. 1, the merchant server 924 of FIG. 6, themarketplace server 18 of FIG. 6, and the marketplace database 20 of FIG.6. The EI buyer computing device 926 includes the digital wallet 944 ofFIG. 6 and sensors 1250. The sensors 1250 includes one or more of anaudio sensor (i.e., a microphone), an image sensor (i.e., a camera), acompass sensor, a position sensor (i.e., a GPS receiver), an elevationsensor, a weather sensor, etc. Hereafter, the EI buyer computing device926 may be interchangeably referred to as a user computing device. Themarketplace server 18 includes the use processing 940 of FIG. 6 and therule processing 942 of FIG. 6. Hereafter the exchange item marketplacenetwork may be interchangeable referred to as a data communicationsystem. The data communication system functions to verify redemption ofan exchange item in the exchange item marketplace network.

In an example of operation of the verifying of the redemption, when theEI buyer computing device 926 initiates redemption of an exchange item(EI), the use processing 940 receives merchant use information 1254 fromthe merchant server 924, where the merchant use information 1254includes one or more of sensor data from the sensors 1250, EI rules,buyer use information 1252, and payment information. The receivingincludes one or more of the EI buyer computing device 926 receiving EIinfo 950 and EI rule set 952, where the marketplace server 18 exchangesthe EI info 950 and the EI rule set 952 with the EI issuing server 920when generating the EI, the EI buyer computing device 926 obtaining thesensor data from the sensors 1250, generating the buyer use information1252 that includes one or more of the sensor information, the EI rules,an identifier of an item for purchase, and a blockchain ledger inaccordance with a secure custody protocol; and sending the buyer useinformation 1252, via the POS equipment 32 to the merchant server 924.

With the redemption initiated, the rule processing 942 interprets thesensor data in accordance with the one or more EI rules associated withthe EI to produce sensory summary information. The interpreting includesone or more of identifying an analysis approach based on the EI rule andperforming an analysis in accordance with the analysis approach on atleast a portion of the sensor data to produce the sensory summaryinformation. For example, the rule processing 942 analyzes image sensordata to generate the sensory summary information.

With the interpretation of the sensor data, the use processing 940determines a risk level for the redemption based on the sensor summaryinformation. The determining includes one or more of comparing thesensor summary information to estimated sensor summary information basedon one or more of the EI rule, the EI, and the sensor data; andgenerating the risk level for the redemption based on the comparison,i.e., indicating a high risk of an unfavorable redemption when thecomparison is unfavorable. For example, the use processing 940 generatesan unfavorable risk level when the image sensor data generated sensorysummary information compares unfavorably to a predetermined imageassociated with a merchant of the merchant server 924 (e.g., indicatingthat the EI buyer computing device 926 is probably not located at astore affiliated with the expected merchant server 924).

Having determined the risk level, the use processing 940 for theprocesses the redemption based on the determined risk level. The furtherprocessing includes at least one of denying the redemption when the risklevel is greater than a maximum risk threshold level and allowing theredemption when the risk level is less than the maximum threshold level.

FIG. 12B is a logic diagram of an embodiment of a method for verifyingredemption of an exchange item in an exchange item marketplace network.When a buyer computing device initiates redemption of an exchange item(EI), the method includes step 1260 where a processing module (e.g., ofa marketplace server) receives merchant use information from a merchantserver, where the merchant use information includes sensor dataassociated with the buyer computing device in accordance with one ormore EI rules associated with the EI. The receiving includes one or moreof the buyer computing device receiving EI information and EI rules fromthe marketplace server upon acquisition of the EI; the buyer computingdevice obtaining the sensor data from sensors; the buyer computingdevice generating buyer use information that includes one or more of thesensor data, EI rules, an identifier of an item for purchase, and ablockchain ledger in accordance with a secure custody protocol; and thebuyer computing device sending the buyer use information to the merchantserver.

The method continues at step 1262 where the processing module interpretsthe sensor data in accordance with the one or more EI rules to producesensor summary information. The interpreting includes identifying ananalysis approach based on the EI rule and performing an analysis inaccordance with the analysis approach on at least a portion of thesensor data to produce the sensor summary information.

The method continues at step 1264 where the processing module determinesa risk level for the redemption based on the sensor summary information.The determining of the risk level includes one or more of comparing thesensor summary information to estimated sensor summary information basedon one or more of the EI rule, the EI, and the sensor data; andgenerating the risk level for the redemption based on the comparison,i.e., indicating a high risk of an unfavorable redemption when thecomparison is unfavorable. For instance, the processing module indicatesthe high risk of the unfavorable redemption when the sensor summaryinformation does not correlate to expected sensor information associatedwith a location of the buyer computing device.

The method continues at step 1266 where the processing module furtherprocesses the redemption based on the determined risk level. Forexample, the processing module denies the redemption when the risk levelis greater than a maximum risk threshold level. As another example, theprocessing module allows the redemption when the risk level is less thanthe maximum threshold level.

FIG. 13A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the point-of-sale (POS)equipment 32 of FIG. 1, the merchant server 924 of FIG. 6, themarketplace server 18 of FIG. 6, and the marketplace database 20 of FIG.6. The EI buyer computing device 926 includes the digital wallet 944 ofFIG. 6. Hereafter, the EI buyer computing device 926 may beinterchangeably referred to as a user computing device. The marketplaceserver 18 includes the use processing 940 of FIG. 6 and the set upprocessing 936 of FIG. 6. Hereafter the exchange item marketplacenetwork may be interchangeable referred to as a data communicationsystem. The data communication system functions to authorize exchangeitem redemption in the exchange item marketplace network.

In an example of operation of the authorizing of the exchange item (EI)redemption, when the EI buyer computing device 926 obtains an exchangeitem, the set up processing 936 exchanges secure purchase information1270 with the EI buyer computing device 926, with the EI buyer computingdevice 926 provides a public key associated with the EI buyer computingdevice. The exchanging includes one or more of receiving the public keyand an EI identifier (ID); updating a blockchain ledger to include thepublic key in accordance with a secure custody protocol; sending theupdated blockchain ledger, EI information 950, and an EI rule set 952 tothe EI buyer computing device 926; and storing the updated blockchainledger in the marketplace database 20, where the set up processing 936exchanges the EI information 950 and the EI rule set 952 with the EIissuing server 920, where the EI issuing server 920 exchanges trustinformation 954 with the EI trusted module 922, and where the EI trustedmodule exchanges set up verification 956 with the set up processing 936to verify the EI.

When the EI buyer computing device 926 initiates redemption of the EI,the use processing 940 receives merchant use information 1274 from themerchant server 924, where the merchant server receives buyer useinformation 1272 from the EI buyer computing device 926 via the POSequipment 32, where the buyer use information 1272 includes a signaturefrom the EI buyer computing device, and where the EI buyer computingdevice 926 generates the signature utilizing a private key of apublic/private key pair where the public key is included in theblockchain ledger. The receiving includes one or more of the EI buyercomputing device 926 utilizing the private key to generate thesignature; the EI buyer computing device generating the buyer useinformation 1272 to include one or more of an identifier of an item forpurchase, the EI identifier (ID), an EI buyer computing device ID, andthe blockchain ledger; and the EI buyer computing device 926 sending thebuyer use information 1272 to the merchant server 924 via the POSequipment 32, where the merchant server 924 sends the merchant useinformation 1274 to the use processing 940, where the merchant useinformation 1274 includes the buyer use information 1272 and a merchantID.

Having received the merchant use information 1274, the use processing940 issues further merchant use information to the POS equipment 32 viathe merchant server 924, where the further merchant use informationincludes marketplace server authorization information and at least someof the buyer use information 1272. The issuing includes one or more ofverifying the received EI buyer computing device signature utilizing atleast one of the public key extracted from the received blockchainledger and a public key extracted from a copy of the blockchain ledgerretrieved from the marketplace database 20; generating the furthermerchant use information; and sending the further merchant useinformation to the merchant server, where at least one of the POSequipment 32 and the merchant server 924 may perform a furtherauthorization of the redemption, where the further authorizationincludes at least one of interpreting the received marketplace serverauthorization information and verifying the received EI buyer computingdevice signature utilizing the public key extracted from the receivedblockchain ledger.

FIG. 13B is a logic diagram of an embodiment of a method for authorizingexchange item redemption in an exchange item marketplace network. When acomputing device is to obtain an exchange item (EI), the method includesstep 1280 where a processing module (e.g., of a marketplace server),exchanges secure purchase information with the computing device, wherethe secure purchase information includes a security aspect forutilization in a subsequent EI redemption transaction. The exchangingincludes one or more of receiving a public key (i.e., of apublic/private key pair of the computing device) as the security aspectand an EI identifier (ID); updating a blockchain ledger to include thepublic key in accordance with a secure custody protocol; sending theupdated blockchain ledger, EI information, and EI rule set to thecomputing device; and storing the updated blockchain ledger in amarketplace database for utilization in the subsequent EI redemptiontransaction.

When the computing device initiates the redemption transaction, themethod continues at step 1282 where the processing module receives buyeruse information from point of sale (POS) equipment, where the buyer useinformation includes a representation of the security aspect. Thereceiving includes one or more of the computing device utilizing theprivate key to generate a signature as the representation of thesecurity aspect; the computing device generating the buyer useinformation to include one or more of an identifier of an item forpurchase, the EI identifier (ID), a computing device ID, and theblockchain ledger; and the computing device sending the buyer useinformation to a merchant server via the POS equipment, where themerchant server sends the merchant use information to the processingmodule, and where the merchant use information includes the buyer useinformation and a merchant ID.

The method continues at step 1284 where the processing module issuesauthorization information to the POS equipment, where the authorizationinformation is based on verification of the representation of thesecurity aspect with regards to the security aspect. The issuingincludes one or more of verifying the received computing devicesignature utilizing at least one of a public key extracted from thereceived blockchain ledger and a public key extracted from a copy of theblockchain ledger retrieved from the marketplace database; generatingthe further merchant use information and sending the further merchantuse information to the merchant server, where at least one of the POSequipment and the merchant server may perform a further authorization ofthe redemption, where the further authorization includes at least one ofinterpreting a received marketplace server authorization information andverifying the received computing device signature utilizing the publickey extracted from the received blockchain ledger.

FIG. 14A is a schematic block diagram of a no point-of-sale terminalexchange item marketplace network that includes the marketplace server18, the marketplace database 20, network 24, the merchant server 924,and the computing device 926. The computing device 926 includes thedigital wallet 944 for a particular user (e.g., user AA). Themarketplace database 20 includes the agreement database 930 and theexchange item (EI) database 934. The exchange item marketplace functionsto process a sale using an exchange item (EI) between the computingdevice 926 and a merchant without the aid of point-of-sale (POS)equipment.

In an example of operation, the marketplace server 18 receives a requestto use 945 a digital exchange item (EI) from the computing device 926.The computing device 926 updates a digital chain of custody of thedigital exchange item in regards to the request 945. The digital chainof custody of the digital exchange item includes data blocks ofinformation relating to the exchange item and the use of the exchangeitem and will be discussed in greater detail with reference to FIG. 14B.The marketplace server 18 obtains secure custody of the digital chain ofcustody of the digital exchange item. For example, the computing device926 includes the digital chain of custody in the request to use 945 thedigital exchange item. Alternatively, the marketplace server 18 requeststhe digital chain of custody from the computing device 926 after therequest 945 is received. Alternatively, the marketplace server 18securely stores the digital chain of custody of the digital exchangeitem for the computing device 926.

After receiving the request 945, the marketplace server 18 obtains theEI information 947 and EI use information 949 for verification from oneor more previous secure data blocks of the digital chain of custody(e.g., via the request, the computing device 926, etc.), the exchangeinformation database 934, and/or a trusted server (e.g., the merchantserver 924). The EI information 947 includes one or more of an exchangeitem identifier (e.g., a serial number), owner information (e.g., a userPIN number, user ID, etc.), exchange item type (e.g., gift card,voucher, store credit, etc.), exchange item brand (e.g., issuer),balance information, and expiration date.

The EI use information 949 includes one or more of identity of item forpurchase, identity the merchant affiliated with the request, pricinginformation of the item for purchase, purchasing rules (e.g., EI rules,conditions, use options, etc.), and the type of purchase (e.g., a directpurchase without aid of a point-of-sale terminal). Purchasing rules areallowable values or ranges of values of parameters associated with anexchange item as a function of one or more conditions and of one or moreuse options. For example, a parent may purchase a digital exchange item(e.g., a gift card) for a child that can be used at a local coffee shop.During the purchase, the parent established a purchasing rule such thatthe exchange item can only be used on food and/or that a certain balancemust be maintained on the exchange item.

The marketplace server 18 updates the digital chain of custody of thedigital exchange item in accordance with the verifying of the EIinformation 947 and EI use information 949. When the EI information 947and EI use information 949 is not verified, the marketplace server 18denies the request to use 945 the EI. The marketplace server 18 thendetermines an error in verifying the one or more of the EI information947 and EI use information 949. For example, the marketplace server 18may not be able to verify the EI information 947 and/or EI useinformation 949 because fraud is detected, the EI information 947 and/orEI use information 949 is invalid (e.g., the identity of the EI does notexist, the serial number is invalid, etc.), there are insufficient fundsto complete the request, the user/owner cannot be verified (e.g.,invalid PIN), and/or a purchasing rule has not been met (e.g., therequest was made outside a designated time of use, a condition was notmet, etc.).

When the error is detected, the marketplace server 18 initiates acorrective measure. For example, if the PIN was invalid, the marketplaceserver 18 will request a new PIN from the computing device 926. Asanother example, if fraud is detected, the marketplace server 18 mayinitiate a hold on the future use of the EI. As another example, iffunds are insufficient, the marketplace server 18 will notify thecomputing device 926 to try the request again when funds are sufficient.

When the exchange item information and the exchange item use informationis verified, the marketplace server 18 verifies merchant information ofthe merchant affiliated with the request 945 regarding the requested useof the digital exchange item. The merchant information includes themerchant data 951 (e.g., information about the merchant) and theacquisition information 953 (information about the request). Themerchant information includes one or more of identity of the merchant(i.e., merchant ID), identity of item for purchase, availability of theitem for purchase (e.g., the item is in inventory, the item is notavailable is the specified size/color but is available in othersizes/colors, etc.), purchasing rules (e.g., conditions, specials,sales, discounts, etc.), pricing information of the item for purchase,and type of purchase (e.g., a direct purchase without aid of apoint-of-sale terminal).

The marketplace server 18 updates the digital chain of custody of thedigital exchange item in accordance with the verifying of the merchantinformation. When the merchant information is not verified, themarketplace server 18 denies the request to use 945 the EI anddetermines an error in verifying the merchant information. For example,the marketplace server may not be able to verify the merchantinformation because one or more of the merchant cannot be verified(e.g., the merchant ID is invalid), the item for purchase cannot beidentified (e.g., invalid item ID), the item for purchase is no longeravailable, and/or a purchasing rule has not been met (e.g., the requestwas made outside a designated time of use, a condition was not met,etc.). When the error is identified, the marketplace server 18 initiatesa corrective measure. For example, if the merchant cannot be verified,the marketplace server 18 will notify the computing device 926 that themerchant ID is incorrect or does not exist. As another example, if theitem for purchase is no longer available but other styles/versions are,the marketplace server 18 may notify the computing device 926 of otherchoices.

When the merchant information is verified, the marketplace server 18executes the use of the EI. The marketplace server executes the use ofthe EI by facilitating completion of the purchase transaction,facilitating payment distribution from the computing device 926 to themerchant server 924 (i.e., without the aid of a point-of-sale terminal),and updates the EI information 947 and EI use information 949 (e.g., themarketplace database 20 and digital wallet 944 are updated) to reflectthe completed purchase transaction and the payment distribution.

FIG. 14B is a schematic block diagram of a secure chain of custody 115of a digital exchange item. The secure chain of custody 115 of thedigital exchange item (i.e., digital chain of custody) includes datablocks (e.g., secure data block x, x+1, and x+2) of information relatingto the exchange item and the use of the exchange item. Each block of thesecure chain of custody includes a header section 111 and a transactionsection 113.

The header section 111 includes one or more of a nonce, a hash of apreceding block of the secure chain of custody 115, where the precedingblock was under control of a preceding device in a chain of control ofthe secure chain of custody 115, and a hash of a current block (e.g., acurrent transaction section) of the secure chain of custody 115, wherethe current block is under control of a current device in the chain ofcontrol of the secure chain of custody 115. The transaction section 113includes one or more of a public key of the current device, a signatureof the preceding device, payment information regarding a change ofcontrol from the preceding device to the current device, and exchangeitem information that includes at least some of the identity of theexchange item, a brand of the exchange item, time restrictions of theexchange item, a digital image of the exchange item, the authenticatedvalue, and use restrictions of the exchange item.

In an example of operation, a user device (e.g., computing device 926)initiates use of the exchange item by sending a request to themarketplace server 18. In this exchange, the user device 926 is thetransactor and the marketplace server 18 is the transactee. The userdevice 926 updates the secure chain of custody 115 to reflect theinitiated use of the exchange item. To update the secure chain ofcustody 115, the user device 926 generates new secure data block x, andadds secure data block x to the digital chain of custody. Generatingsecure data block x includes populating the new secure data block with arepresentation of recent transaction information which includesgenerating the header section 111 and transaction section 113 to reflectthe initiated use of the exchange item and establish trust for the newsecure data block utilizing a trust approach (e.g., at least one of adigital signature approach utilizing a private key of a private/publickey pair of a EI distributor and encrypting the recent transactioninformation utilizing the private key of the private/public key pair ofthe EI distributor to produce the representation of the recenttransaction information).

Next, the marketplace server 18 verifies the buyer's (user/computingdevice 926) use of the exchange item (e.g., the marketplace serververifies the EI information and EI use information). In this exchange,the marketplace server 18 is the transactor and the transactee. Themarketplace server 18 updates the secure chain of custody 115 to reflectverifying the use of the exchange item. To update the secure chain ofcustody 115, the marketplace server 18 generates new secure data blockx+1, and adds secure data block x+1 to the digital chain of custody 115.Generating secure data block x+1 includes populating the new secure datablock x+1 with a representation of recent transaction information whichincludes generating the header section 111 and transaction section 113to reflect verifying the buyer's use of the exchange item andestablishing trust for the new secure data block utilizing a trustapproach (e.g., at least one of a digital signature approach utilizing aprivate key of a private/public key pair of a EI distributor andencrypting the recent transaction information utilizing the private keyof the private/public key pair of the EI distributor to produce therepresentation of the recent transaction information).

Next, the marketplace server 18 verifies the merchant's acceptance ofthe exchange item for use (e.g., the marketplace server verifies themerchant's information). In this exchange, the marketplace server 18 isthe transactor and the transactee. The marketplace server 18 updates thesecure chain of custody 115 to reflect verifying the merchantinformation. To update the secure chain of custody 115, the marketplaceserver 18 generates new secure data block x+2, and adds secure datablock x+2 to the digital chain of custody 115. Generating secure datablock x+2 includes populating the new secure data block x+2 with arepresentation of recent transaction information which includesgenerating the header section 111 and transaction section 113 to reflectverifying merchant's information and establishing trust for the newsecure data block utilizing a trust approach (e.g., at least one of adigital signature approach utilizing a private key of a private/publickey pair of a EI distributor and encrypting the recent transactioninformation utilizing the private key of the private/public key pair ofthe EI distributor to produce the representation of the recenttransaction information). An example of updating the secure chain ofcustody to reflect executed use of the exchange item is described inFIG. 14C.

FIG. 14C is a schematic block diagram of an example of updating thesecure chain of custody to reflect executed use of an exchange item. Themarketplace server 18 executes the use of the exchange item byfacilitating completion of a purchase transaction, facilitating paymentdistribution to the merchant, and updating the EI information and EI useinformation (e.g., updating the marketplace database and user digitalwallet) to reflect the completed purchase transaction and the paymentdistribution. Facilitating the completion of the purchase transactionincludes determining whether use conditions apply (e.g., specials,sales, discounts, etc.), incorporating those use conditions in the sale,and updating the EI information and EI use information accordingly.

The marketplace server 18 updates the secure chain of custody to reflectthe executed use. In this exchange, the marketplace server 18 is thetransactor and the transactee. To update the secure chain of custody,the marketplace server 18 generates new secure data block x+3, and addssecure data block x+3 to the digital chain of custody. Generating securedata block x+3 includes populating the new secure data block x+3 with arepresentation of recent transaction information which includesgenerating the header section 111 and transaction section 113 to reflectthe executed use (e.g., the transaction section includes arepresentation of each of the: completion of the purchase transaction,facilitated payment distribution to the merchant, and updated the EIinformation and EI use information) and establishing trust for the newsecure data block utilizing a trust approach (e.g., at least one of adigital signature approach utilizing a private key of a private/publickey pair of a EI distributor and encrypting the recent transactioninformation utilizing the private key of the private/public key pair ofthe EI distributor to produce the representation of the recenttransaction information).

Alternatively, the marketplace server 18 may update the secure chain ofcustody to reflect the executed use by creating a new secure data blockfor each part of the executed use. For example, the transaction sectionof new secure block x+3 includes a representation of the completedpurchase, the transaction section of a new secure block x+4 includes arepresentation of the facilitated payment distribution to the merchant,and the transaction section of a new secure block x+5 includes arepresentation of the updated the EI information and EI use information.

FIG. 15 is an example of a secure data block 117 that includes a headersection 111 and a transaction section 113. The header section 111includes a representation of a previous secure data block (if any), anda representation of the current transactions. Each of therepresentations may be created by performing a hash function, adeterministic function, and/or an encoding function (e.g., encryption,scrambling, compacting, etc.).

The transaction section 113 includes a digital signature of thetransactor, a description of a transaction, and information regardingthe transaction. As an example, the description of the transaction is“create exchange item” and the information regarding the transaction isthe “exchange item information”, which includes the identity of theexchange item, a brand of the exchange item, time restrictions of theexchange item, a digital image of the exchange item, the authenticatedvalue, and/or use restrictions of the exchange item. The transactionsection may further include other transaction descriptions and othertransaction information. The transaction section may further include thepublic key of the transactee and/or may be encrypted using the publickey of the transactee.

FIGS. 16A and 16B are an example of creating the header section and thetransaction section of a secure data block. In FIG. 16A, thetransactee's public key and the transaction section of the previoussecure data block are hashed, using a hashing function, to produce ahash result. The hash resultant and the transactor's private key areinputs to a signature function to generate the transactor's signature.Note that the transactee can verify the transactor's signature using thetransactor's public key, the transactee's private key, and therepresentation of the previous secure data block in the header of thecurrent secure data block.

In FIG. 16B, the previous secure data block is an input to hashingfunction to produce a previous secure data block hash (e.g., arepresentation of the previous secure data block). A nonce (e.g., aunique arbitrary number) may also be an input to the hashing function tocreate the previous secure data block hash. In addition, the transactionsection of the current secure data block is an input to another hashingfunction, which produces a current transaction section hash (e.g., arepresentation of the current transaction). Note that the transactionsection includes the transactee's public key, the transactor'ssignature, transaction description(s), and transaction information. Thetransaction action section may further include the transactor's publickey and may be encrypted using the transactee's public key. The previoussecure data block hash and the current transaction section hash form theheader section of the current secure data block.

FIG. 17 is a logic diagram of an embodiment of a method for a nopoint-of-sale terminal exchange item redemption approach. The methodbegins with step 1286 where a marketplace server of a computing networkreceives a request to use a digital exchange item (EI) from a computingdevice of the computing network. The computing device updates a digitalchain of custody of the digital exchange item in regards to the request.The digital chain of custody of the digital exchange item includes datablocks of information relating to the exchange item and the use of theexchange item.

The updating the digital chain of custody includes generating a newsecure data block, and adding the new secure data block to the digitalchain of custody. The generating the new secure data block includespopulating the new secure data block with a representation of recenttransaction information (e.g., the request to use the digital EI) andestablishing trust for the new secure data block utilizing a trustapproach (e.g., at least one of a digital signature approach utilizing aprivate key of a private/public key pair of a EI distributor andencrypting the recent transaction information utilizing the private keyof the private/public key pair of the EI distributor to produce therepresentation of the recent transaction information).

The method continues with step 1288 where the marketplace server obtainssecure custody of the digital chain of custody of the digital exchangeitem. For example, the computing device includes the digital chain ofcustody in the request to use the digital exchange item. Alternatively,the marketplace server requests the digital chain of custody from thecomputing device after the request is received. Alternatively, themarketplace server securely stores the digital chain of custody of thedigital exchange item for the computing device.

The method continues with step 1290 where the marketplace serververifies exchange item information and exchange item use information.The marketplace server obtains the exchange item information andexchange use information for verification from one or more of one ormore previous secure data blocks of the digital chain of custody, anexchange information database, and a trusted server.

The exchange item information includes one or more of an exchange itemidentifier (e.g., a serial number), owner information (e.g., a user PINnumber, user ID, etc.), exchange item type (e.g., gift card, voucher,store credit, etc.), exchange item brand, balance information, andexpiration date. The exchange item use information includes one or moreof identity of item for purchase, identity the merchant affiliated withthe request, pricing information of the item for purchase, purchasingrules, and the type of purchase (e.g., a direct purchase without aid ofa point-of-sale terminal). Purchasing rules are allowable values orranges of values of parameters associated with an exchange item as afunction of one or more conditions and of one or more use options. Forexample, a parent may purchase a digital exchange item (e.g., a giftcard) for a child that can be used at a local coffee shop. During thepurchase, the parent established a purchasing rule such that theexchange item can only be used on food and/or that a certain balancemust be maintained on the exchange item.

The method continues with step 1292 where the marketplace server updatesthe digital chain of custody of the digital exchange item in accordancewith the verifying of the exchange item information and exchange itemuse information. For example, the marketplace server updates the digitalchain of custody by generating a new secure data block, and adding thenew secure data block to the digital chain of custody. The marketplaceserver generates the new secure data block by populating the new securedata block with a representation of recent transaction information(e.g., verifying of the exchange item information and exchange item useinformation) and establishing trust for the new secure data blockutilizing a trust approach (e.g., at least one of a digital signatureapproach utilizing a private key of a private/public key pair of a EIdistributor and encrypting the recent transaction information utilizingthe private key of the private/public key pair of the EI distributor toproduce the representation of the recent transaction information).

When the exchange item information and the exchange item use informationis not verified, the method continues to step 1302 where the marketplaceserver denies the request to use the digital exchange item. The methodcontinues to step 1304 where the marketplace server determines an errorin verifying the one or more of the exchange item information and theexchange item use information.

For example, the marketplace server may not be able to verify theexchange item information and/or the exchange item use informationbecause fraud is detected, the exchange item information and/or theexchange item use information is invalid (e.g., the identity of theexchange item does not exist, the serial number is invalid, etc.), thereare insufficient funds to complete the request, the user/owner cannot beverified (e.g., invalid PIN), and/or a purchasing rule has not been met(e.g., the request was made outside a designated time of use, acondition was not met, etc.). The method continues to step 1306 wherethe marketplace server initiates a corrective measure. For example, ifthe PIN was invalid, the marketplace server will request a new PIN. Asanother example, if fraud is detected, the marketplace server mayinitiate a hold on the future use of the exchange item. As anotherexample, if funds are insufficient, the marketplace server will notifythe computing device to try the request again when funds are sufficient.

When the exchange item information and the exchange item use informationis verified, the method continues to step 1294 where the marketplaceserver verifies merchant information of the merchant affiliated with therequest regarding the requested use of the digital exchange item. Themerchant information includes one or more of identity of the merchant(i.e., merchant ID), identity of item for purchase, availability of theitem for purchase (e.g., the item is in inventory, the item is notavailable is the specified size/color but is available in othersizes/colors, etc.), purchasing rules (e.g., an item is on sale for acertain time period), pricing information of the item for purchase, andtype of purchase (e.g., a direct purchase without aid of a point-of-saleterminal).

The method continues with step 1296 where the marketplace server updatesthe digital chain of custody of the digital exchange item in accordancewith the verifying of the merchant information. For example, themarketplace server updates the digital chain of custody by generating anew secure data block, and adding the new secure data block to thedigital chain of custody. The marketplace server generates the newsecure data block by populating the new secure data block with arepresentation of recent transaction information (e.g., verifying themerchant information) and establishing trust for the new secure datablock utilizing a trust approach (e.g., at least one of a digitalsignature approach utilizing a private key of a private/public key pairof a EI distributor and encrypting the recent transaction informationutilizing the private key of the private/public key pair of the EIdistributor to produce the representation of the recent transactioninformation).

When the merchant information is not verified, the method continues tostep 1302 where the marketplace server denies the request to use thedigital exchange item. The method continues to step 1304 where themarketplace server determines an error in verifying the merchantinformation.

For example, the marketplace server may not be able to verify themerchant information because one or more of the merchant cannot beverified (e.g., the merchant ID is invalid), the item for purchasecannot be identified (e.g., invalid item ID), the item for purchase isno longer available, and/or a purchasing rule has not been met (e.g.,the request was made outside a designated time of use, a condition wasnot met, etc.). The method continues to step 1306 where the marketplaceserver initiates a corrective measure. For example, if the merchantcannot be verified, the marketplace will notify the computing devicethat the merchant ID is incorrect or does not exist. As another example,if the item for purchase is no longer available but otherstyles/versions are, the marketplace server may notify the computingdevice of other choices.

When the merchant information is verified, the method continues to step1298 where the marketplace server executes the use of the digitalexchange item. The marketplace server executes the use of the digitalexchange item by facilitating completion of a purchase transaction,facilitating payment distribution from the computing device to themerchant (i.e., without the aid of a point-of-sale terminal), andupdates the exchange item information and the exchange item useinformation to reflect the completed purchase transaction and thepayment distribution (e.g., to reflect a new balance).

The method continues with step 1300 where the marketplace server updatesthe digital chain of custody of the digital exchange item in accordancewith the executed use of the digital exchange item. For example, themarketplace server updates the digital chain of custody by generating anew secure data block, and adding the new secure data block to thedigital chain of custody. The marketplace server generates the newsecure data block by populating the new secure data block with arepresentation of recent transaction information (e.g., executed use ofthe digital exchange item) and establishing trust for the new securedata block utilizing a trust approach (e.g., at least one of a digitalsignature approach utilizing a private key of a private/public key pairof a EI distributor and encrypting the recent transaction informationutilizing the private key of the private/public key pair of the EIdistributor to produce the representation of the recent transactioninformation).

It is noted that terminologies as may be used herein such as bit stream,stream, signal sequence, etc. (or their equivalents) have been usedinterchangeably to describe digital information whose contentcorresponds to any of a number of desired types (e.g., data, video,speech, audio, etc. any of which may generally be referred to as‘data’).

As may be used herein, the terms “substantially” and “approximately”provides an industry-accepted tolerance for its corresponding termand/or relativity between items. Such an industry-accepted toleranceranges from less than one percent to fifty percent and corresponds to,but is not limited to, component values, integrated circuit processvariations, temperature variations, rise and fall times, and/or thermalnoise. Such relativity between items ranges from a difference of a fewpercent to magnitude differences. As may also be used herein, theterm(s) “configured to”, “operably coupled to”, “coupled to”, and/or“coupling” includes direct coupling between items and/or indirectcoupling between items via an intervening item (e.g., an item includes,but is not limited to, a component, an element, a circuit, and/or amodule) where, for an example of indirect coupling, the intervening itemdoes not modify the information of a signal but may adjust its currentlevel, voltage level, and/or power level. As may further be used herein,inferred coupling (i.e., where one element is coupled to another elementby inference) includes direct and indirect coupling between two items inthe same manner as “coupled to”. As may even further be used herein, theterm “configured to”, “operable to”, “coupled to”, or “operably coupledto” indicates that an item includes one or more of power connections,input(s), output(s), etc., to perform, when activated, one or more itscorresponding functions and may further include inferred coupling to oneor more other items. As may still further be used herein, the term“associated with”, includes direct and/or indirect coupling of separateitems and/or one item being embedded within another item.

As may be used herein, the term “compares favorably”, indicates that acomparison between two or more items, signals, etc., provides a desiredrelationship. For example, when the desired relationship is that signal1 has a greater magnitude than signal 2, a favorable comparison may beachieved when the magnitude of signal 1 is greater than that of signal 2or when the magnitude of signal 2 is less than that of signal 1. As maybe used herein, the term “compares unfavorably”, indicates that acomparison between two or more items, signals, etc., fails to providethe desired relationship.

As may also be used herein, the terms “processing module”, “processingcircuit”, “processor”, and/or “processing unit” may be a singleprocessing device or a plurality of processing devices. Such aprocessing device may be a microprocessor, micro-controller, digitalsignal processor, microcomputer, central processing unit, fieldprogrammable gate array, programmable logic device, state machine, logiccircuitry, analog circuitry, digital circuitry, and/or any device thatmanipulates signals (analog and/or digital) based on hard coding of thecircuitry and/or operational instructions. The processing module,module, processing circuit, and/or processing unit may be, or furtherinclude, memory and/or an integrated memory element, which may be asingle memory device, a plurality of memory devices, and/or embeddedcircuitry of another processing module, module, processing circuit,and/or processing unit. Such a memory device may be a read-only memory,random access memory, volatile memory, non-volatile memory, staticmemory, dynamic memory, flash memory, cache memory, and/or any devicethat stores digital information. Note that if the processing module,module, processing circuit, and/or processing unit includes more thanone processing device, the processing devices may be centrally located(e.g., directly coupled together via a wired and/or wireless busstructure) or may be distributedly located (e.g., cloud computing viaindirect coupling via a local area network and/or a wide area network).Further note that if the processing module, module, processing circuit,and/or processing unit implements one or more of its functions via astate machine, analog circuitry, digital circuitry, and/or logiccircuitry, the memory and/or memory element storing the correspondingoperational instructions may be embedded within, or external to, thecircuitry comprising the state machine, analog circuitry, digitalcircuitry, and/or logic circuitry. Still further note that, the memoryelement may store, and the processing module, module, processingcircuit, and/or processing unit executes, hard coded and/or operationalinstructions corresponding to at least some of the steps and/orfunctions illustrated in one or more of the Figures. Such a memorydevice or memory element can be included in an article of manufacture.

One or more embodiments have been described above with the aid of methodsteps illustrating the performance of specified functions andrelationships thereof. The boundaries and sequence of these functionalbuilding blocks and method steps have been arbitrarily defined hereinfor convenience of description. Alternate boundaries and sequences canbe defined so long as the specified functions and relationships areappropriately performed. Any such alternate boundaries or sequences arethus within the scope and spirit of the claims. Further, the boundariesof these functional building blocks have been arbitrarily defined forconvenience of description. Alternate boundaries could be defined aslong as the certain significant functions are appropriately performed.Similarly, flow diagram blocks may also have been arbitrarily definedherein to illustrate certain significant functionality.

To the extent used, the flow diagram block boundaries and sequence couldhave been defined otherwise and still perform the certain significantfunctionality. Such alternate definitions of both functional buildingblocks and flow diagram blocks and sequences are thus within the scopeand spirit of the claims. One of average skill in the art will alsorecognize that the functional building blocks, and other illustrativeblocks, modules and components herein, can be implemented as illustratedor by discrete components, application specific integrated circuits,processors executing appropriate software and the like or anycombination thereof.

In addition, a flow diagram may include a “start” and/or “continue”indication. The “start” and “continue” indications reflect that thesteps presented can optionally be incorporated in or otherwise used inconjunction with other routines. In this context, “start” indicates thebeginning of the first step presented and may be preceded by otheractivities not specifically shown. Further, the “continue” indicationreflects that the steps presented may be performed multiple times and/ormay be succeeded by other activities not specifically shown. Further,while a flow diagram indicates a particular ordering of steps, otherorderings are likewise possible provided that the principles ofcausality are maintained.

The one or more embodiments are used herein to illustrate one or moreaspects, one or more features, one or more concepts, and/or one or moreexamples. A physical embodiment of an apparatus, an article ofmanufacture, a machine, and/or of a process may include one or more ofthe aspects, features, concepts, examples, etc. described with referenceto one or more of the embodiments discussed herein. Further, from figureto figure, the embodiments may incorporate the same or similarly namedfunctions, steps, modules, etc. that may use the same or differentreference numbers and, as such, the functions, steps, modules, etc. maybe the same or similar functions, steps, modules, etc. or differentones.

Unless specifically stated to the contra, signals to, from, and/orbetween elements in a figure of any of the figures presented herein maybe analog or digital, continuous time or discrete time, and single-endedor differential. For instance, if a signal path is shown as asingle-ended path, it also represents a differential signal path.Similarly, if a signal path is shown as a differential path, it alsorepresents a single-ended signal path. While one or more particulararchitectures are described herein, other architectures can likewise beimplemented that use one or more data buses not expressly shown, directconnectivity between elements, and/or indirect coupling between otherelements as recognized by one of average skill in the art.

The term “module” is used in the description of one or more of theembodiments. A module implements one or more functions via a device suchas a processor or other processing device or other hardware that mayinclude or operate in association with a memory that stores operationalinstructions. A module may operate independently and/or in conjunctionwith software and/or firmware. As also used herein, a module may containone or more sub-modules, each of which may be one or more modules.

While particular combinations of various functions and features of theone or more embodiments have been expressly described herein, othercombinations of these features and functions are likewise possible. Thepresent disclosure is not limited by the particular examples disclosedherein and expressly incorporates these other combinations.

What is claimed is:
 1. A method comprises: when a buyer computing deviceof an exchange item marketplace network initiates redemption of anexchange item associated with a merchant server of the exchange itemmarketplace network: receiving, by a marketplace server of the exchangeitem marketplace network, merchant use information from the merchantserver, wherein the merchant use information includes sensor datagenerated by one or more sensors of the buyer computing device;interpreting, by the marketplace server, the sensor data in accordancewith one or more exchange item rules to produce sensor summaryinformation; determining, by the marketplace server, a risk level forthe redemption based on the sensor summary information; and processing,by the marketplace server, the redemption based on the determined risklevel.
 2. The method of claim 1, wherein the merchant use informationfurther includes one or more of: the one or more exchange item rules;buyer use information; an identifier of an item for purchase; access toa blockchain ledger in accordance with a secure custody protocol; andpayment information.
 3. The method of claim 1, wherein the one or moresensors include one or more of: an audio sensor; an image sensor; aposition sensor; a compass sensor; an elevation sensor; and a weathersensor.
 4. The method of claim 1, wherein the interpreting the sensordata in accordance with the one or more exchange item rules comprises:identifying, by the marketplace server, one or more analysis approachesbased on the one or more exchange item rules; and performing, by themarketplace server, one or more analyses in accordance with the one ormore analysis approaches on at least a portion of the sensor data toproduce the sensory summary information.
 5. The method of claim 1,wherein the determining the risk level for the redemption comprises:comparing, by the marketplace server, the sensory summary information toestimated sensory summary information, wherein the estimated sensorysummary information is based on one or more of: the one or more exchangeitem rules, the exchange item, and the sensor data to produce comparisondata; and generating, by the marketplace server, the risk level for theredemption based on the comparison data.
 6. The method of claim 5,wherein when the comparison data is indicative of a high risk ofunfavorable redemption: determining, by the marketplace server, that therisk level for the redemption is high.
 7. The method of claim 5, whereinwhen the comparison data is indicative of a low risk of unfavorableredemption: determining, by the marketplace server, that the risk levelfor the redemption is low.
 8. The method of claim 1, wherein theprocessing the redemption based on the determined risk level comprisesone of: when the determined risk level is greater than a maximum riskthreshold: denying, by the marketplace server, the redemption; and whenthe determined risk level is less than the maximum risk threshold:allowing, by the marketplace server, the redemption.
 9. A marketplaceserver of an exchange item marketplace network, the marketplace servercomprises: an interface; memory; and a processing module operablycoupled to the memory and the interface, wherein the processing moduleis operable to: when a buyer computing device of an exchange itemmarketplace network initiates redemption of an exchange item associatedwith a merchant server of the exchange item marketplace network: receivemerchant use information from the merchant server, wherein the merchantuse information includes sensor data generated by one or more sensors ofthe buyer computing device; interpret the sensor data in accordance withone or more exchange item rules to produce sensor summary information;and determine a risk level for the redemption based on the sensorsummary information; and process the redemption based on the determinedrisk level.
 10. The marketplace server of claim 9, wherein the merchantuse information further includes one or more of: the one or moreexchange item rules; buyer use information; an identifier of an item forpurchase; access to a blockchain ledger in accordance with a securecustody protocol; and payment information.
 11. The marketplace server ofclaim 9, wherein the one or more sensors include one or more of: anaudio sensor; an image sensor; a position sensor; a compass sensor; anelevation sensor; and a weather sensor.
 12. The marketplace server ofclaim 9, wherein the processing module is further operable to interpretthe sensor data in accordance with the one or more exchange item rulesby: identifying one or more analysis approaches based on the one or moreexchange item rules; and performing one or more analyses in accordancewith the one or more analysis approaches on at least a portion of thesensor data to produce the sensory summary information.
 13. Themarketplace server of claim 9, wherein the processing module is furtheroperable to determine the risk level for the redemption by: comparingthe sensory summary information to estimated sensory summaryinformation, wherein the estimated sensory summary information is basedon one or more of: the one or more exchange item rules, the exchangeitem, and the sensor data to produce comparison data; and generating, bythe marketplace server, the risk level for the redemption based on thecomparison data.
 14. The marketplace server of claim 13, wherein theprocessing module is further operable to: when the comparison data isindicative of a high risk of unfavorable redemption: determine that therisk level for the redemption is high.
 15. The marketplace server ofclaim 13, wherein the processing module is further operable to: when thecomparison data is indicative of a low risk of unfavorable redemption:determine that the risk level for the redemption is low.
 16. Themarketplace server of claim 9, wherein the processing module is furtheroperable to process the redemption based on the determined risk level byone of: when the determined risk level is greater than a maximum riskthreshold: deny the redemption; and when the determined risk level isless than the maximum risk threshold: allow the redemption.